AI Markets Were Deceived To Believe In DeepSeek’s Low Training Costs; They Are Actually 400 Times Higher Than The Reported Figure

The controversy around DeepSeek's costs for training their R1 model shook up the markets, but it seems like there was a lot of deception around it, since the actual figures are indeed surprising. DeepSeek's Training Costs Are Said To Be Significantly Higher Than The Reported "$5 Million" Figure; They Have Access To High-End Hardware The research firm SemiAnalysis has conducted an extensive analysis of what's actually behind DeepSeek in terms of training costs, refuting the narrative that R1 has become so efficient that the compute resources from NVIDIA and others are unnecessary. Before we dive into the actual hardware used […]

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