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Were DeepSeek's Development Costs Much Higher Than Reported?
Nearly three years ago a team of Chinese AI engineers working for DeepSeek's parent company unveiled an earlier AI supercomputer that the Washington Post says was constructed from 10,000 A100 GPUs purchased from Nvidia. Roughly six months later "Washington had banned Nvidia from selling any more A...
Nvidia saw its soaring value crater by $589 billion Monday as DeepSeek rocketed to the top of download charts, prompting President Donald Trump to call for U.S. industry to be "laser focused" on competing... But a closer look at DeepSeek reveals that its parent company deployed a large and sophisticated chip set in its supercomputer, leading experts to assess the total cost of the project as much higher than the relatively paltry sum that U.S. markets reacted to this week... Lennart Heim, an AI expert at Rand, said DeepSeek's evident access to [the earlier] supercomputer would have made it easier for the company to develop a more efficient model, requiring fewer chips. "We know two things for sure: DeepSeek is pricing their services very competitively, and second, the performance of their models is comparable to leading competitors," said Kai-Shen Huang, an AI expert at the Research Institute for Democracy, Society and Emerging Technology, a Taipei-based think tank.
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