DeepSeek has developed its R1 large language model for just $294,000, significantly less than typical US AI model costs. The model was trained on 512 Nvidia H800 chips available in China despite US export restrictions. R1 is notable for being the first major LLM to undergo peer review, with its methods published in Nature. It uses an innovative automated reinforcement learning approach where it rewards itself for correct solutions rather than imitating human examples. The model has become widely accessible with over 10.9 million downloads on Hugging Face, making it the platform's most popular model. AI researchers praise DeepSeek's transparency and suggest it may influence more cost-effective, open approaches to AI development in the future.