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DeepSeek's hardware spend could be as high as $500 million, new report estimates


A new report from SemiAnalysis said that DeepSeek's hardware spend is "well higher than $500M," significantly above prior estimates.

In DeepSeek's paper about its newest artificial intelligence model, the company said that its total training costs amounted to $5.576 million, based on the rental price of Nvidia's graphics processing units. Experts and analysts this week touted the quality of DeepSeek's model, and noted how impressive it is considering the U.S. curbed chip exports to China three times in three years. Bernstein analysts wrote in a note Monday that "according to the many (occasionally hysterical) hot takes we saw [over the weekend,] the implications range anywhere from 'That's really interesting' to 'This is the death-knell of the AI infrastructure complex as we know it.'"

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