PYMNTS.com January 28, 2025
Chinese AI startup DeepSeek’s deeply discounted foundation models could herald lower prices for businesses seeking to adopt AI — by removing one of the biggest blockers to enterprise deployment.
“Cost is the biggest hurdle to adoption of AI applications,” wrote BofA Global Research analysts Brad Sills and Carly Liu in a note published on Tuesday (Jan. 28.). “We believe advancements in cost could drive price even lower and therefore adoption higher.”
DeepSeek tanked shares of AI companies on Monday (Jan. 27), after revealing that it could train a foundation model for only $5.58 million on 2,048 Nvidia H800 chips. OpenAI and Anthropic have pegged the costs at $100 million to a billion dollars using thousands of Nvidia’s AI chips.
DeepSeek...
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