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DeepSeek costs $500m, not publicly stated $6m: analysts

Industry analysts estimate DeepSeek’s total hardware investment surpasses US$500 million, far exceeding the publicly stated US$6 million pre-training cost.

The US$6 million figure only covers GPU pre-training – not accounting for research, development, data preparation, and hardware maintenance costs.

With a workforce of about 150, DeepSeek aggressively recruits top graduates, offering salaries exceeding US$1.3 million annually for high-potential candidates.

Backed by Chinese hedge fund High-Flyer, it initially secured nearly 10,000 A100 GPUs prior. Recent reports suggest DeepSeek and High-Flyer now operate around 50,000 GPUs, including H800 and restricted H20 models.

Recent DeepSeek developments

Timeline
31-Jan-2025 ⚠️ DeepSeek-R1 produces ‘toxic output, biased content’: report
  • DeepSeek-R1 11x riskier than OpenAI’s O1 model
  • Model generates toxic, biased, and insecure content
31-Jan-2025 🔒 DeepSeek faces global data security restrictions
  • DeepSeek faces global access restrictions.
  • Concerns over data privacy prompt agency actions.
29-Jan-2025 🤖 DeepSeek founder gains recognition in AI sector
  • Liang Wenfeng recognized as AI leader by China
  • DeepSeek’s model contributes to Nasdaq decline
29-Jan-2025 📉 DeepSeek’s AI chatbot disrupts Southeast Asia’s data centers
  • DeepSeek’s model disrupts AI investment landscape
  • US tech stocks decline due to low-cost AI competition
29-Jan-2025 🌟 DeepSeek pauses for Lunar New Year amid global buzz
  • DeepSeek launches Janus-Pro, outperforms rivals
  • Growth sparks interest in Silicon Valley and Wall Street

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