Earlier quoted context omitted.
Correct me if I'm wrong but if Chinese can produce the same quality at %99 discount, then the supposed $500B investment is actually worth $5B. Isn't that the kind wrong investment that can break nations? Edit: Just to clarify, I don't imply that this is public money to be spent. It will commission $500B worth of human and material resources for 5 years that can be much more productive if used for something else - i.e…
The $500B is just an aspirational figure they hope to spend on data centers to run AI models, such as GPT-o1 and its successors, that have already been developed. If you want to compare the DeepSeek-R development costs to anything, you should be comparing it to what it cost OpenAI to develop GPT-o1 (not what they plan to spend to run it), but both numbers are somewhat irrelevant since they both build upon prior resea…
They aren't comparing the 500B investment to the cost of deepseek-R1 (allegedly 5 millions) they are comparing the cost of R1 to the one of o1 and extrapolating from that (we don't know exactly how much OpenAI spent to train it, but estimates put it around $100M, in which case deepseek would have been only 95% more cost-efficient, not 99%)