DeepSeek reveals $294,000 as cost of training its AI model
The post DeepSeek reveals $294,000 as cost of training its AI model appeared on BitcoinEthereumNews.com. China’s DeepSeek has claimed its flagship AI system, known as R1, was trained for just $294,000, which is a fraction of the sums believed to be spent by US competitors. The details were published in a peer-reviewed paper in Nature this week, and it is likely to fuel further debate over Beijing’s ambitions in the global artificial intelligence race. The Hangzhou-based company said the reasoning-focused model was trained using 512 Nvidia H800 chips. This hardware was designed specifically for China after the US prohibited sales of the more powerful H100 and A100 processors. The paper, which was co-authored by founder Liang Wenfeng, marks the first time the firm has disclosed such costs. DeepSeek uses a fraction of US models’ cost In January, the release of DeepSeek’s cheaper AI tools destabilized global markets, resulting in a sell-off in tech shares on fears they could undercut established giants such as Nvidia and OpenAI. However, Liang and his team have kept a low profile, surfacing only for sporadic product updates ever since. The reported $294,000 price tag stands in stark contrast to estimates from American firms. The chief executive of OpenAI, Sam Altman, in 2023 said: “Training foundational models cost much more than $100 million.” However, he did not give out any specific breakdown. Training large language models involves running banks of powerful chips for extended periods, consuming enormous amounts of electricity while processing text and code. Industry observers have long assumed the bill for such projects runs into the tens or even hundreds of millions. That assumption is now being challenged, and in a supplementary document, DeepSeek admitted it owns A100 chips and had used them in early development, before moving the full-scale training onto its H800 cluster. According to the tech firm, the model ran for 80 hours during its final…
The post DeepSeek reveals $294,000 as cost of training its AI model appeared on BitcoinEthereumNews.com.
China’s DeepSeek has claimed its flagship AI system, known as R1, was trained for just $294,000, which is a fraction of the sums believed to be spent by US competitors. The details were published in a peer-reviewed paper in Nature this week, and it is likely to fuel further debate over Beijing’s ambitions in the global artificial intelligence race. The Hangzhou-based company said the reasoning-focused model was trained using 512 Nvidia H800 chips. This hardware was designed specifically for China after the US prohibited sales of the more powerful H100 and A100 processors. The paper, which was co-authored by founder Liang Wenfeng, marks the first time the firm has disclosed such costs. DeepSeek uses a fraction of US models’ cost In January, the release of DeepSeek’s cheaper AI tools destabilized global markets, resulting in a sell-off in tech shares on fears they could undercut established giants such as Nvidia and OpenAI. However, Liang and his team have kept a low profile, surfacing only for sporadic product updates ever since. The reported $294,000 price tag stands in stark contrast to estimates from American firms. The chief executive of OpenAI, Sam Altman, in 2023 said: “Training foundational models cost much more than $100 million.” However, he did not give out any specific breakdown. Training large language models involves running banks of powerful chips for extended periods, consuming enormous amounts of electricity while processing text and code. Industry observers have long assumed the bill for such projects runs into the tens or even hundreds of millions. That assumption is now being challenged, and in a supplementary document, DeepSeek admitted it owns A100 chips and had used them in early development, before moving the full-scale training onto its H800 cluster. According to the tech firm, the model ran for 80 hours during its final…
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