DeepSeek, a Chinese AI lab, has made waves by open-sourcing its R1 reasoning model, which rivals OpenAI's o1 but was developed on less advanced hardware at a much lower cost using innovative training methods. This move challenges conventional business practices but is strategic for gaining trust and market foothold, especially in the West where skepticism towards Chinese technology persists. Open-sourcing the model allows for greater transparency and control, crucial for compliance with standards like HIPAA. The commoditization of language models raises questions about the value of paying premiums for proprietary models like those of OpenAI, as open-source alternatives offer similar performance at lower costs. While open-source models require more technical maintenance, they provide flexibility and customization, particularly valuable in infrastructure. Despite this shift, proprietary models like those from OpenAI remain relevant, having pioneered the field and potentially driving further innovation in response to competition from efficient open-source models like R1.