They seem to have matched OpenAI model capability on a fraction of the resources. R1 is roughly as good as o1 and can be run locally. There are some interesting contributions in the paper too. So I see it as two parts, (1) the money, lots invested, wondering if they will ever make it back now (2) China showing impressive results while being handicapped by the West
https://arxiv.org/abs/2501.12948
Keep an eye on the effort to reproduce here: https://github.com/huggingface/open-r1
We will see if the (over?) reaction matches reality in time. Media sure loves to whipsaw us all around