“DeepSeek . . . reportedly has 50,000 Nvidia GPUs and spent $1.6 billion on buildouts”
Posted: Feb 02, 2025
- DeepSeek, a Chinese startup, claimed to have minimal hardware costs for its AI model R1, but has actually spent $1.6 billion on hardware, with 50,000 Nvidia GPUs
- DeepSeek operates its own data centers, hires Chinese talent, and focuses on efficiency and algorithmic improvements
- The company has pioneered innovations like Multi-Head Latent Attention (MLA) and emphasizes AI model development efficiencies over brute-force scaling
- Despite claims of low training costs, DeepSeek has spent over $500 million on AI development since its inception
- DeepSeek challenges industry leaders with strategic investments, technical breakthroughs, and a competitive workforce, supported by its lean structure
- Analysts suggest that DeepSeek's success is based on billions of dollars in investments, debunking the hype around its initial claims
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - While some comments find humor or disbelief at the situation, suggesting a negative view towards DeepSeek and the accuracy of Chinese information, the sentiment towards Nvidia itself seems to involve both skepticism and acknowledgment of potential benefits, leading to a mixed/negative sentiment overall. Summarized comments: - Many comments suggest disbelief or mockery about the news of DeepSeek, viewing it as potentially false or exaggerated. - Nvidia was reported to be positive about the DeepSeek news, which contrasts with the expectation that it would be negative news due to US trade restrictions. - Comments express skepticism about the validity of information coming from China, labeling it as potentially misleading or dishonest. - Nvidia is perceived to continue benefiting financially despite trade sanctions as they likely sold many GPUs. - There's a perception that Chinese companies may innovate and compete by improving upon existing US technologies. - Comparison made between DeepSeek and OpenAI regarding costs, with a notion that DeepSeek might be cheaper, though potentially worse. - Remarks about the ineffectiveness of sanctions against China in this context. Stock tickers discussed: $NVDA, DeepSeek
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