Have AI costs been a corporate hype job? Looks like it.
$5.6 million cost vs $100 million to $1 billion cost isn't even in the same ballpark.
DeepSeek said in a technical report that it used a cluster of more than 2,000 Nvidia chips to train its V3 model, compared with tens of thousands of chips that are normally used for training models of similar size.
Global chip stocks slumped Monday after Chinese artificial-intelligence company DeepSeek said it developed AI models that nearly matched American rivals despite using inferior chips, raising fears it could disrupt the global dominance of U.S. tech.
DeepSeek said its R1 and V3 modelsboth in the top 10 on ranking platform Chatbot Arenaperformed better than or close to leading Western models. The company said training one of its latest models cost $5.6 million, compared with the $100 million to $1 billion range cited last year by the CEO of U.S. rival Anthropic
https://www.morningstar.com/news/dow-jones/202501271345/chip-stocks-tumble-after-chinas-deepseek-ai-models-raise-doubts-over-us-tech-dominance