DeepSeek R1 vs. ChatGPT o3-mini: Is OpenAI’s Reign Over?

For the longest time, OpenAI has been the gold standard in consumer-facing AI models. But China is determined to close the AI gap with the US, is pushing forward the strongest contenders? DeepSeek R1.

DeepSeek R1 isn’t just another chatbot—it’s a reasoning-focused AI model, designed to break through the limitations of conventional chatbots by solving complex problems, coding efficiently, and explaining its thought process transparently. 

Meanwhile, OpenAI’s ChatGPT o3-mini is their newest cost-effective reasoning model, designed to strike a balance between efficiency, affordability, and reasoning depth. 

After hours of research and hands-on testing of both models, we’ve found that comparing DeepSeek R1 and ChatGPT o3-mini reveals two completely different philosophies of AI development. While they’re both solving the same problems, they’re approaching them from fundamentally different angles. Let’s understand which one is for YOU! 

How Are These Models Built?

o3-mini:  

OpenAI’s o3-mini is a lightweight version of the o3 model, optimized for faster performance while maintaining strong reasoning capabilities. 

Unlike previous ChatGPT models that had fixed intelligence levels, o3-mini introduces a unique adjustable reasoning mode, allowing users to choose between low, medium, and high reasoning levels depending on their needs. This feature is particularly useful in balancing response speed and depth. 

Deepseek R1:  

DeepSeek R1, developed by the Chinese AI firm DeepSeek, is an open-source AI model designed specifically for mathematical, logical, and coding-related reasoning. Unlike ChatGPT, which relies on human-labeled data for supervised learning, DeepSeek R1 was trained using reinforcement learning, meaning it gradually improves without direct human intervention. 

Its key strength lies in transparency, DeepSeek R1 doesn’t just give answers but shows its entire reasoning process step by step. This makes it highly useful for technical fields where understanding the logic behind an answer is just as important as getting the answer itself.

How Well Do They Perform? (Benchmarks & Real-World Usage)

Let’s compare them across key reasoning and problem-solving areas.

Mathematical and Logical Reasoning

We asked both models, “What is the sum of the squares of the first 10 prime numbers?”

ChatGPT o3-mini provided an answer quickly, but without necessarily showing how it arrived at the answer unless prompted. In this case, it did. And the output was clear and efficient. 

DeepSeek R1 would break down each prime number, show the individual squares, sum them up, and provide an explanation along the way. So, the only added benefit here is the transparency of reasoning.    

Coding and Software Development     

 We asked both the tools to optimize a Python function:

• ChatGPT o3-mini would return a concise, optimized version of the function with minimal explanation.
• DeepSeek R1 would not only optimize the function but also explain why each change was made.

This makes DeepSeek R1 better for learning and debugging, while ChatGPT o3-mini is better for quick, high-level optimizations. 

ChatGPT o3-mini’s ELO rating (Codeforces): 2130, meaning it performs at an expert competitive programmer level.

DeepSeek R1’s Codeforces rating: 1900, slightly below expert level but still strong.

DeepSeek R1’s SWE-bench accuracy: 49.2%, meaning it solves nearly half of the software engineering benchmark tasks correctly.      

How they perform other key tasks: 

Task	ChatGPT o3-mini	DeepSeek R1
3D Animation Generation (Python)	❌ Failed to deliver	✅ Functional output
Video Editing Automation	✅ Good results	✅ Good results
PDF URL Extraction (HTML & Python)	✅ Working code	✅ Working code

Business Reasoning 

We asked o3 mini and R1 a business reasoning question and the answers are here: 

ChatGPT o3-mini: Had a faster response rate, with more clear and crisp answers.   

Deepseek R1: The response time for the problem was 32 seconds, very high as compared to o3-mini which was at 6 seconds. But the response is much more detailed and elaborate.              

Contextual and Logical Thinking 

A test question was designed where the AI had to infer an answer from an implied meaning rather than direct information. 

• ChatGPT o3-mini: Provided a reasonable answer, but missed a subtle detail in the context.

• DeepSeek R1: Fully understood the context, inferred the correct answer, and explained the reasoning behind it.   

So, if you need an AI to “get the hint” in conversations or abstract thinking, DeepSeek R1 has the edge.

Cost Comparison: Which Is More Affordable?

OpenAI has fine-tuned its ChatGPT o3-mini pricing structure for cost-conscious businesses while still keeping its premium positioning. 

• Input Tokens: Standard Rate: $1.10 per million tokens, Batch API Rate: $0.55 per million tokens (for businesses willing to trade instant responses for 24-hour batch processing)
• Output Tokens: Standard Rate: $4.40 per million tokens, Batch API Rate: $2.20 per million tokens

This model makes one thing very clear: OpenAI is targeting enterprise-scale efficiency. 

DeepSeek R1 plays a completely different game. Instead of locking businesses into a walled garden, DeepSeek is betting on open-source AI and transparent pricing to win over developers and enterprises who want AI on their own terms.

• Input Tokens: Cache Hit: $0.14 per million tokens, Cache Miss: $0.55 per million tokens
• Output Tokens: $2.19 per million tokens

What does this mean in practice? If DeepSeek’s API has already processed a similar request before (cache hit), you pay next to nothing. For businesses using predictable, repetitive AI workloads, this translates into massive cost savings over time.

Compare that to OpenAI’s minimum $1.10 per million tokens on input, and you start to see why DeepSeek’s pricing is a serious challenge to OpenAI’s business model.

Making Your Choice

If you’re looking for a straightforward recommendation:

Choose ChatGPT o3-mini if you believe AI should be a tool that just works. It’s the model for people who want to get things done without wondering about the how and why.

Choose DeepSeek R1 if you believe AI should be a collaborative partner. It’s for the curious minds who want to understand, tinker, and maybe even improve upon what they’re working with.

What Does The Internet Think? 

Conclusion

AI is at a crossroads. Open-source vs. closed. Customizable vs. controlled. Innovation for all vs. pay-to-play. 

DeepSeek R1 is making a bold bet: AI should be open, adaptable, and accessible. OpenAI’s o3-mini, on the other hand, is all about efficiency, speed, and premium performance.

Either way, DeepSeek is forcing the AI industry to rethink competitiveness. Its approach disrupts traditional notions of what makes AI successful, and even governments are starting to take notice. With AI shaping global power structures, countries must now ask: is dominance built on proprietary AI, or does true success lie in open innovation?

The choice isn’t just technical. It’s ideological.