Reinforcement Learning Heats Up, White House Orders Muscular AI Policy, and more...

The Batch

DeepSeek released an open-weight reasoning model (DeepSeek-R1) that matches OpenAI's o1 performance, triggering a stock market sell-off of Nvidia and other U.S. tech companies. DeepSeek-R1 costs $2.19 per million output tokens compared to o1's $60 per million, a nearly 30-fold price difference. The advancement demonstrates that algorithmic innovation and optimized training can compete with raw computational scaling, shifting focus away from the assumption that more computing power is the only path to AI progress.