DeepSeek R1 Matches OpenAI o1 on Benchmarks at 27x Lower Cost

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DeepSeek R1 is priced at $0.55 per million input tokens, compared to OpenAI o1's $15.00, creating a 27-fold cost difference between the two AI reasoning models. Despite the steep price gap, R1 performs comparably to o1 on most major reasoning benchmarks, including math and coding tasks, with o1 leading meaningfully only on graduate-level science reasoning. For teams running one million reasoning calls per month, switching from o1 to R1 could save over $72,000 monthly. The cost advantage widens further with caching — DeepSeek offers a 90% discount on cached inputs versus OpenAI's 50%, pushing the effective pricing gap to 136x. However, o1 retains practical advantages in structured output enforcement, native function calling, and enterprise-grade service agreements, which continue to justify its premium for certain use cases.

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