DeepSeek AI has launched an innovative model, DeepSeek OCR, aiming to revolutionize how text is represented and compressed. According to Matthew Berman’s YouTube post on October 22, 2025, DeepSeek OCR allows for tenfold text compression while maintaining high accuracy. This is significant as it addresses the context window bottleneck in language models, where the computing cost increases exponentially as more tokens are added. Using images to encode text, DeepSeek enables a significantly larger amount of text to be processed within the same token budget, reducing the computational cost. Berman provides a detailed breakdown, explaining that the model uses various engines, like SAM and CLIP, to compress and decode the text. Current results show over 96% OCR decoding precision at a compression rate of 9-10X. Notable figures like Andre Carpathy and Brian Romel have reacted positively, highlighting the potential for compressing vast information, such as the contents of an entire encyclopedia, into a single image. DeepSeek AI’s approach not only compresses text efficiently but also integrates various formatting elements, potentially replacing token-based systems with image-based inputs, making it a significant leap towards more efficient AI models.