PYMNTS.com January 31, 2025
DeepSeek was the talk of Silicon Valley and Wall Street this week after it singlehandedly wiped nearly $600 billion of market value from Nvidia. Its $5.6 million cost to train its foundation models with only about 2,000 of slower H800 Nvidia chips brought concerns of lower future chip demand.
But questions started emerging about its pre-training cost. Bank of America analysts believe other costs were excluded from the total, while OpenAI thinks DeepSeek used a method called distillation to use generated outputs from OpenAI’s own models, a violation of its terms of service.
What is undisputed is that DeepSeek introduced several engineering innovations that Silicon Valley could adopt to lower their own pre-training costs. This bodes well for enterprises, since...
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