An open-source model, trained at a fraction of the cost of traditional approaches, that rivals expensive LLMs?! DeepSeek’s R1 is exciting. A reminder of why we do what we do: ensure that every AI team, from startups to enterprises, can access the most powerful GPUs without compromise. Breakthroughs like R1 change the game and make us all more ambitious 🚀
VALDI's Karl Mozurkewich shares 3 insights on DeepSeek:
💡 We’re still compute-constrained, even with R1.
DeepSeek’s success lies in how it optimized training, particularly through reinforcement learning, that improves the use of available compute to do more with less. They don’t eliminate the need for powerful, modern GPUs, but they raise the bar. With breakthroughs like this, teams want access to the best hardware, to iterate and push beyond R1’s limitations.
💡 Leveling the playing field isn’t a single event—it’s ongoing work.
DeepSeek’s open-source release is a gift to smaller teams and startups. It provides a huge head start, offering a performant model and training weights out of the gate. But let’s be clear: access to innovation isn’t the same as access to infrastructure. Startups still need flexible, scalable, cost-effective compute solutions to build on breakthroughs like R1. That’s our mission at Valdi — making it easy for these teams to rent exactly what they need, when they need it, and scale without committing to massive capital outlays.
💡 The cost of AI is dropping—but innovation keeps raising the stakes.
Satya Nadella recently said AI is becoming cheaper to use. He’s right, when it comes to existing features. What DeepSeek proves is that lower costs unlock new opportunities, which in turn demand more compute. Sure, the cost per feature dropped, but the race to develop advanced capabilities—like reasoning or AGI—requires even more sophisticated infrastructure. This cycle of innovation is what makes on-demand GPU solutions so essential. Renting GPUs provides the economic flexibility to move fast, experiment, and focus on breakthroughs, not logistics.
What’s your take?
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