According to data compiled by independent research firm Melius Research, the cost of DeepSeek's AI model to generate information is about one-tenth of OpenAI ChatGPT. Melius Research analyst Ben Reitzes said DeepSeek is likely to have mastered a way to reduce the cost of model training by using more efficient memory and learning strategies. DeepSeek uses a type of calculation that only activates the most relevant parts of the model to answer questions, and is open source, which can reduce licensing costs. Reitzes said competitors may lower prices by adjusting capital expenditures.