Uncategorized

This New AI Beat ChatGPT in 10 Days!

By Sawan Kumar
Share:
0 views
Last updated:

Quick Answer

DeepSeek R1 vs ChatGPT: DeepSeek is free, 27x cheaper than GPT-4, and runs locally — here is what makes its chain-of-thought reasoning fundamentally different.

Key Takeaways

  • 1DeepSeek R1 reached number one on the App Store within 10 days of launch and caused a measurable drop in Nvidia's stock price, signalling a genuine shift in the AI competitive landscape.
  • 2Unlike ChatGPT, which trains on labeled datasets, DeepSeek R1 uses reinforcement learning — the same trial-and-error process a baby uses when learning to walk — producing a model that reasons toward answers rather than retrieving them.
  • 3Activating Deep Think R1 mode at chat.deepseek.com shows a live thinking pane where the model breaks down the problem, questions its own assumptions, and verifies its logic before committing to a final answer.
  • 4You can run DeepSeek R1 fully offline by installing Ollama from ollama.com and running 'ollama run deepseek-r1:7b' in your terminal — the 4.7 GB model downloads once and runs locally on Mac, Windows, or Linux with no subscription.
  • 5DeepSeek R1 costs 27 times less than GPT-4 to run via API, making large-scale AI automation economically viable for builders who previously could not justify the per-query cost.
  • 6The cloud version of DeepSeek routes queries through Chinese servers, so anyone handling sensitive business or client data should use the local Ollama installation to keep queries entirely off external networks.
  • 7DeepSeek R1 performs best on coding, mathematical analysis, and business strategy tasks where transparent step-by-step reasoning adds direct value — creative writing and open-ended content generation still favor GPT-4.

In 10 days, the DeepSeek R1 vs ChatGPT debate went from theoretical to very real — DeepSeek hit number one on the App Store, sent Nvidia stock tumbling, and gave Sam Altman something to think about. Here is exactly what the model does, why it works differently at a technical level, and how to run it free on your own machine today.

What DeepSeek R1 Is and Why It Beats ChatGPT on Reasoning

DeepSeek R1 is a free, open-source AI reasoning model that learns through reinforcement — trial, error, and self-correction — rather than the labeled-data memorisation that powers ChatGPT. Instead of returning a flat answer, it displays its full chain of thought before committing to a conclusion: breaking down the problem, questioning its own assumptions, and double-checking its logic in real time. It runs at 27 times lower cost than GPT-4 and can be installed locally on any Mac, Windows, or Linux machine with no subscription and no usage cap.

Why the Training Approach Makes All the Difference

ChatGPT was trained like a student memorising textbooks: vast labeled datasets, human feedback, iterative fine-tuning. DeepSeek R1 was trained the way a baby learns to walk — it tries, fails, adjusts, and tries again without a manual. That process is called reinforcement learning, and the consequence is an AI that does not retrieve answers, it reasons toward them.

When you activate Deep Think R1 mode, you watch the model work. It surfaces intermediate steps, catches its own errors mid-reasoning, and only then produces a final answer. Having trained more than 79,000 students across 74 courses in AI, automation, and business systems, I have tested a lot of models that claim to think. DeepSeek R1 is the first one where the claim holds up under scrutiny on analytical tasks.

For anyone building AI workflows — whether that is content pipelines, GoHighLevel automations, or business strategy tools — this transparency matters. You can audit the reasoning, not just the output.

How to Use DeepSeek R1 on the Web

The interface at chat.deepseek.com mirrors ChatGPT closely enough that there is almost no learning curve. You get a text input field and two toggles at the bottom: Deep Think (R1) and Search. Activating Deep Think R1 switches the model into full reasoning mode — a live thinking pane appears before the final answer populates, showing the model working through the problem in real time. For casual conversation, skip both toggles and use it exactly as you would use ChatGPT. The interface difference is superficial. The processing difference underneath is not.

How to Run DeepSeek R1 Locally — Step by Step

The local installation is where DeepSeek R1 vs ChatGPT stops being a fair fight on cost and privacy. Here is the exact process I used on my Mac — identical on Windows and Linux:

  • Go to ollama.com and download the Ollama app for your operating system.
  • Open Terminal on Mac or Linux, or Command Prompt on Windows.
  • Run this command: ollama run deepseek-r1:7b
  • Ollama downloads the 7B parameter model — the file is exactly 4.7 GB — and starts it automatically.
  • When the success message appears, type your query directly into the terminal. The model runs fully offline from that point.

I tested the setup from scratch. Total time from opening a browser to running the first query: under 10 minutes. The first question I asked was whether 8.1 or 9.2 is greater. DeepSeek did not just say 9.2. It walked through the comparison decimal place by decimal place, verified its own logic, confirmed the answer, then stopped. Watching a locally-hosted, fully offline AI reason through a problem with that level of transparency is genuinely different from anything a cloud API returns.

The 7B model is the right starting point for most machines. Larger variants exist for more demanding analytical tasks if your hardware supports them, but the 7B handles coding, math, and strategy questions without strain on a modern laptop.

The 27x Cost Advantage: What It Means for Builders

DeepSeek R1 costs 27 times less than GPT-4 to run via API. That is not a rounding error — it is a structural shift in what is economically viable to build. For anyone constructing AI-powered tools at scale, the cost-per-query difference determines whether a product makes money or bleeds it.

The web interface at chat.deepseek.com is completely free with no hard usage limits on the R1 model. The Ollama local installation is also free — you pay only for electricity. For most educational and business automation use cases, the effective cost is zero. The three strongest use cases are coding projects with real-time reasoning assistance, complex mathematical and scientific analysis where you need to verify intermediate steps, and business strategy planning where the model breaks a large question into testable sub-questions and challenges its own assumptions before answering.

The Honest Limitations of DeepSeek R1

DeepSeek R1 is not a clean replacement for every ChatGPT use case, and saying otherwise would be inaccurate. Three limitations are worth taking seriously before you commit to it as a primary tool.

  • Data privacy: The cloud version at chat.deepseek.com routes queries through Chinese servers. For sensitive client data or proprietary business information, use the local Ollama installation instead — your data never leaves your machine.
  • Creative writing: DeepSeek R1's strength is structured analytical reasoning. Open-ended creative generation, nuanced storytelling, and long-form content still favor GPT-4.
  • Censorship: The model occasionally refuses or truncates responses on certain political topics, a direct consequence of its training environment. For most business and educational use cases this is irrelevant, but it is worth knowing before you build anything that touches sensitive subject matter.

DeepSeek R1 is the clearest proof yet that frontier reasoning does not require a frontier budget. The next step is concrete: open chat.deepseek.com, activate Deep Think R1, and ask the same analytical question you last asked ChatGPT — then watch the thinking process and compare what you get.


Keep Learning

If this was useful, these are worth reading next:

Frequently Asked Questions

Tags:
sawan kumar
sawan kumar videos
deepseek r1
deepseek ai
deepseek explained
ai tools 2025
deepseek tutorial
ai model comparison
how to use deepseek
deepseek r1 setup
BestsellerRecommended for you

📚 Mastering AI with ChatGPT, Gemini & 25+ AI Tools

Create content, automate marketing, and transform your business using ChatGPT and 25+ AI tools. Trusted by 45,000+ students worldwide.

FreeMini-Course

Want to master Uncategorized?

Get free access to our mini-course and start learning with step-by-step video lessons from Sawan Kumar. Join 79,000+ students already learning.

No spam, ever. Unsubscribe anytime.

Bestseller

Mastering AI with ChatGPT, Gemini & 25+ AI Tools

Create content, automate marketing, and transform your business using ChatGPT and 25+ AI tools. Trusted by 45,000+ students worldwide.

$49$199
Enroll Now →

30-day money-back guarantee

Free Strategy Call

Want personalised help with Uncategorized?

Book a free 30-min call with Sawan — no pitch, just clarity.

Book a Free Call

79,000+ students trained