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Last Week in AI: A 50x Cheaper Reasoning Model, $500B in AI Infrastructure and AI That Uses Your Computer

Ellis Crosby
Ellis Crosby
AI Expert & Incremento AI Lead
Last Week in AI: A 50x Cheaper Reasoning Model, $500B in AI Infrastructure and AI That Uses Your Computer

Welcome to Incremento’s first "Last Week in AI" post! Every Monday, we’ll bring you the biggest AI updates, breaking them down into simple, practical insights. Our goal? Help you understand how these advancements can actually make a difference for your business. Let’s dive in!

 

DeepSeek R1: AI That’s Powerful and Affordable

Last week, DeepSeek made waves in the AI world by launching R1, a new reasoning model that’s just as smart as OpenAI’s o1 model but costs 50x less to use. And here’s the kicker: it’s open source, meaning anyone can use or tweak it.

 

Why This Is a Big Deal for Your Business

  1. Lower Costs, Broader Applications: DeepSeek’s pricing is a fraction of what other models cost. For example, processing a million input tokens with DeepSeek costs $0.14, compared to OpenAI’s $15. This dramatic price drop means you can now afford to use advanced reasoning for tasks that weren’t profitable before. From customer support to coding assistance and document writing, R1 brings high-level reasoning into general business operations—not just highly technical tasks.

  2. Smarter Thinking: As a reasoning model, R1 excels at tasks requiring thoughtful processing, like solving problems, generating structured responses, or even helping brainstorm creative ideas. Businesses can use it to streamline workflows, improve customer experiences, and even tackle complex projects like software development or proposal writing.

  3. Faster and Leaner: DeepSeek made their model super-efficient by processing text in chunks instead of word by word, and only "turning on" the parts of the model needed for a task. Think of it like having a specialized team member handle one thing really well instead of trying to do everything at once. For your business, this means faster results and fewer resources needed.

  4. Smaller Teams Can Compete: Because it’s open source, businesses of any size can use it. You don’t need to have a billion-dollar budget to take advantage of cutting-edge AI anymore. Whether you’re a startup or a family-run business, this levels the playing field.

 

How You Can Use It

Businesses are already using R1 for things like automating decision-making and providing instant insights from data. Picture using it to give your customers faster answers, automate coding tasks, or generate polished reports with ease—all while keeping costs low.

 

 

Project Stargate: Building the Future of AI

OpenAI, along with SoftBank and Oracle, announced "Project Stargate," a jaw-dropping $500 billion investment to build AI infrastructure in the U.S. This isn’t just about data centers; it’s about creating the backbone for AI innovation on a massive scale.

 

What This Means for You

  1. More Reliable AI Services: If you rely on AI-powered tools, this investment means more stable and faster services. No more slowdowns or outages during peak times.

  2. Bigger Innovations Ahead: This kind of infrastructure will make it possible to develop even more advanced AI solutions. Imagine personalized tools for your industry that are smarter, faster, and more reliable.

  3. Room for Growth: As AI tools become more accessible, businesses like yours will have more opportunities to scale and innovate without worrying about infrastructure bottlenecks.

 

 

OpenAI’s Operator: Your New AI Assistant?

OpenAI also introduced "Operator," an upcoming AI agent that can handle tasks for you online. Unlike traditional automation tools, Operator can use a computer like a human would, interacting directly with a user interface to get things done. It’s not available yet, but will soon be offered to ChatGPT Plus subscribers on the $200/month plan.

 

How Operator Can Help Your Business

  1. Tackling Complex Tasks: Operator’s ability to interact with interfaces means it can perform tasks like filling out online forms, managing inventory systems, or making reservations. This goes beyond simple automation—it’s about mimicking human workflows.

  2. Save Time: Operator can take over repetitive tasks like updating inventory, tracking orders, or scheduling meetings. This frees up your team to focus on more important things.

  3. Early Adopter Benefits: While still in early stages, this tool shows incredible promise. Businesses that get in early can experiment with delegating operational tasks to AI and discover innovative ways to integrate this capability into their processes.

 

Key Takeaway

Operator represents the next step in AI-driven automation, giving businesses a virtual assistant that’s capable of navigating the digital world. It’s a game-changer for tasks that require interacting with systems and software, potentially saving businesses time and resources.

 

 

Wrapping It Up

AI is moving fast, but it’s also becoming more accessible, affordable, and practical for businesses like yours. Whether it’s leveraging DeepSeek’s cost-effective reasoning, benefiting from massive investments in AI infrastructure, or exploring tools like Operator, there’s a lot to be excited about.

At Incremento, we’re here to help you make sense of it all and find the right AI solutions for your business. Got questions or want to brainstorm ideas? Book some time in below —we’re always happy to chat!

See you next Monday for more AI insights!