Deepseek hardware costs can reach $ 500 million: Report

China Deepseek has become the biggest topic in technology this week, with many in industry and Wall Street focused on one number: $ 6 million.

In Deepseek’s Paper Regarding its most artificial intelligence model, the company said its total training costs amount to $ 5.576 million based on the price of renting the rent of Nvidia’s Graphic processing units. Deepseek included a clear warning, saying that the number includes only the “official training” of the model and excludes costs linked to “previous experiments on research and ablation on architectures, algorithms or data”.

At the beginning of the week, the Deepseek AI assistant has taken the covenant place for the most illuminated free app in the US on AppleApp Store, dethroning Openai’s chat. Global Technology Shares are sold as NVIDIA chipmas and Broadcom loss Combined $ 800 billion market cap on Monday.

A A new report from the semiasisA research and consulting research and consulting firm company added more context to Deepseek’s costs. The company estimated that Depepeek’s hardware costs are “much higher than $ 500 million through the company’s history”, adding that the cost of research and development and total property costs are significant. The generation of “synthetic data” to train the model will require “significant amount of calculations,” semi -analysis writes.

The report is said Amazon and GoogleAn indication of how much more money is needed to start models and the company.

“This is because they have to experiment, invent new architectures, to collect and clean data, to pay employees and more,” Semiasis said.

Deepseek’s own document does not include an estimate of its calculation costs. The company did not immediately respond to a request for a comment.

“Being a clear Deepseek is unique in that they first achieved this level of costs and opportunities,” Semianalysts reports. The company added that the R1 on Deepseek is a very good model “and that” catching up the edge of reasoning is quickly objectively impressive. “

Experts and analysts this week advertised the quality of the Deepseek model and noted how impressive the United States was considering Export of a limited chip to China three times in three years. This has led to fears that the United States is lagging behind its main opponent in a market that is predicted to head $ 1 trillion in revenue within a decade.

Bernstein analysts wrote in a note on Monday that “according to the many (occasionally hysterical) hot we saw (over the weekend), the consequences vary everywhere from” This is really interesting “to” This is the death of the AI ​​infrastructure complex We know it. “

Deepseek was founded in 2023 by Liang Venfen, co-founder of High-Flyer, a quantitative hedge fund focused on AI. The launch of AI has been reported to have grown by the AI ​​Study Division of the Hedge Fund in April 2023 to focus on large linguistic models and reach an artificial general intelligence or AGI – AI branch that equals or equals It surpasses human intelligence in a wide range of tasks and this Openai and others are pursuing.

Deepseek is still fully owned and funded by High-Flyer, according to Jefferies analysts.

The buzzing around Deepseek began to lift Steam earlier this month when the launch released R1, his model of reasoning, which rivals Opeai on O1. This is an open code, which means that any AI developer can use it.

Like other Chinese chatbots, Deepseek has restrictions on certain topics: for example, when asked about some of the policies of Chinese leader XI Jinping, for example, Deepseek is reported directs the user from similar lines of questioning.

Openai CEO Sam Altman praised the model publicly, but the company also said he believed there was evidence that Deepseek incorrectly Openai data to build your product.

At an event in Washington, Colombia County, on Thursday, hosting Openai, Altman said Deepseek was “obviously a great model”.

“This is a reminder of the level of competition and the need for a democratic al to win,” he said. He said this also indicated “the level of interest in reasoning, the level of interest in open source”.

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