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DeepSeek reports shockingly low training costs for R1 in new paper


Could this reignite the AI investor panic of January?

The company wrote in a paper published Wednesday that building R1 only cost them $249,000 -- a ridiculously low amount in the high-spending world of AI. For Chinese labs, there's the added roadblock of accessing the US-made chips due to export bans intended to curb competition. DeepSeek's reported ability to create successful models by strategically optimizing older chips also gave it a competitive edge.

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In rare disclosure, DeepSeek claims R1 model training cost just $294K