https://www.digiteex.com Digitex Solutions Fri, 31 Jan 2025 23:46:02 +0000 en-US hourly 1 224764844 https://www.digiteex.com/deepseeks-hardware-spend-could-be-as-high-as-500-million-report/ https://www.digiteex.com/deepseeks-hardware-spend-could-be-as-high-as-500-million-report/#respond Fri, 31 Jan 2025 23:45:58 +0000 https://www.digiteex.com/deepseeks-hardware-spend-could-be-as-high-as-500-million-report/ Faisal Bashir | Lightrocket | Getty ImagesChina’s DeepSeek became the biggest topic in tech this week, with many in the industry and on Wall Street focused on a single number: $6 million.In DeepSeek’s paper about its newest artificial intelligence model, the company said that its total training costs amounted to $5.576 million, based on the rental price of Nvidia’s graphics processing units. DeepSeek included a clear caveat, saying that the number included only the model’s “official training” and excluded the costs tied to “prior research and ablation experiments on architectures, algorithms, or data.”Early in the week, DeepSeek’s AI Assistant took the coveted spot for most-downloaded free app in the U.S. on Apple’s App Store, dethroning OpenAI’s ChatGPT. Global tech stocks sold off, with chipmakers Nvidia and Broadcom losing a combined $800 billion in market cap on Monday.A new report from SemiAnalysis, a semiconductor research and consulting firm, added more context to DeepSeek’s expenses. The firm estimated that DeepSeek’s hardware spend is “well higher than $500M over the company history,” adding that R&D costs and total cost of ownership are significant. Generating “synthetic data” for the model to train on would require “considerable amount of compute,” SemiAnalysis wrote.The report said the Claude 3.5 Sonnet from Anthropic cost “$10s of millions to train,” but noted that Anthropic raised billions for dollars from Amazon and Google, an indication of how much more money is required to run the models and the company.”It’s because they have to experiment, come up with new architectures, gather and clean data, pay employees, and much more,” SemiAnalysis said.DeepSeek’s own paper does not include an estimation of its compute costs. The company didn’t immediately respond to a request for comment.”To be clear DeepSeek is unique in that they achieved this level of cost and capabilities first,” SemiAnalysts wrote. The firm added that DeepSeek’s R1 “is a very good model” and that “catching up to the reasoning edge this quickly is objectively impressive.”Experts and analysts this week touted the quality of DeepSeek’s model, and noted how impressive it is considering the U.S. curbed chip exports to China three times in three years. That led to concerns that the U.S. is falling behind its chief adversary in a market that’s predicted to top $1 trillion in revenue within a decade.Bernstein analysts wrote in a note Monday that “according to the many (occasionally hysterical) hot takes we saw [over the weekend,] the implications range anywhere from ‘That’s really interesting’ to ‘This is the death-knell of the AI infrastructure complex as we know it.'”DeepSeek was founded in 2023 by Liang Wenfeng, co-founder of High-Flyer, a quantitative hedge fund focused on AI. The AI startup reportedly grew out of the hedge fund’s AI research unit in April 2023 to focus on large language models and reaching artificial general intelligence, or AGI — a branch of AI that equals or surpasses human intellect on a wide range of tasks, and that OpenAI and others are pursuing.DeepSeek is still wholly owned by and funded by High-Flyer, according to analysts at Jefferies.The buzz around DeepSeek began picking up steam earlier this month, when the startup released R1, its reasoning model that rivals OpenAI’s o1. It’s open-source, meaning that any AI developer can use it.Like other Chinese chatbots, DeepSeek’s has limitations on certain topics: When asked about some of Chinese leader Xi Jinping’s policies, for instance, DeepSeek reportedly steers the user away from similar lines of questioning.OpenAI CEO Sam Altman has praised the model publicly, but the company has also said it believes there’s evidence that DeepSeek improperly harvested OpenAI data to build its product.At an event in Washington, D.C., on Thursday hosted by OpenAI, Altman said DeepSeek is “clearly a great model.””This is a reminder of the level of competition and the need for democratic Al to win,” he said. He said it also points to the “level of interest in reasoning, the level of interest in open source.”WATCH: Nvidia CEO Jensen Huang and President Trump meet on AI policy


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]]> https://www.digiteex.com/deepseeks-hardware-spend-could-be-as-high-as-500-million-report/feed/ 0 4620 https://www.digiteex.com/u-s-navy-bans-use-of-deepseek-ai-imperative-to-avoid-using/ https://www.digiteex.com/u-s-navy-bans-use-of-deepseek-ai-imperative-to-avoid-using/#respond Tue, 28 Jan 2025 23:20:36 +0000 https://www.digiteex.com/u-s-navy-bans-use-of-deepseek-ai-imperative-to-avoid-using/ Samuel Boivin | Nurphoto | Getty ImagesThe U.S. Navy has instructed its members to avoid using artificial intelligence technology from China’s DeepSeek, CNBC has learned.In a warning issued by email to “shipmates” on Friday, the Navy said DeepSeek’s AI was not to be used “in any capacity” due to “potential security and ethical concerns associated with the model’s origin and usage.”A spokesperson for the U.S. Navy confirmed the authenticity of the email and said it was in reference to the Department of the Navy’s Chief Information Officer’s generative AI policy.The announcement followed DeepSeek’s release of its powerful new reasoning AI model called R1, which rivals technology from OpenAI. The DeepSeek model is open source, meaning any AI developer can use it. The DeepSeek app has surged to the top of Apple’s App Store, dethroning OpenAI’s ChatGPT, and people in the industry have praised its performance and reasoning capabilities.DeepSeek’s pronouncements rocked the capital markets on Monday due to concerns that future AI products will require less-expensive infrastructure than Wall Street has assumed. DeepSeek said in late December that its large language model took only two months and less than $6 million to build despite the U.S. curbing chip exports to China three times in three years. That’s a tiny fraction of the amount spent by OpenAI, Anthropic, Google and others.Shares of AI chipmakers Nvidia and Broadcom each dropped 17% on Monday, a route that wiped out a combined $800 billion in market cap. Those stocks led a 3.1% drop in the Nasdaq.The Navy’s warning landed days earlier.”We would like to bring to your attention a critical update regarding a new AI model called DeepSeek,” the email said. The memo said it’s “imperative” that team members do not use DeepSeek’s AI “for any work-related tasks or personal use.”The email was sent on Friday morning to the distribution list OpNav, which stands for Operational Navy, indicating it was an all-hands memo. The warning was based on an advisory from Naval Air Warcraft Center Division Cyber Workforce Manger.It said recipients were to “refrain from downloading, installing, or using the DeepSeek model in any capacity.”DeepSeek said on Monday it would temporarily limit user registrations “due to large-scale malicious attacks” on its services, before later resuming operations as usual.OpenAI CEO Sam Altman, accompanied by U.S. President Donald Trump, Oracle CTO Larry Ellison (R), and SoftBank CEO Masayoshi Son (2nd-R), speaks during a news conference in the Roosevelt Room of the White House on January 21, 2025 in Washington, DC. Andrew Harnik | Getty ImagesPresident Donald Trump, who took office last Monday, said the sudden rise of DeepSeek “should be a wake-up call” for America’s tech companies. Trump is currently trying to keep Chinese social media app TikTok alive in the U.S., after lawmakers determined that the service must be banned or sold due to national security concerns. Trump was in favor of banning TikTok in his first administration before flip-flopping on the matter.Venture capitalist David Sacks, Trump’s AI and crypto czar, posted on X on Monday that DeepSeek R1 “shows that the AI race will be very competitive,” adding that he is “confident in the U.S. but we can’t be complacent.” Meta, which has developed its own open-source models called Llama, started four DeepSeek-related “war rooms” within its generative AI department, The Information reported.Alexandr Wang, CEO of Scale AI, told CNBC last week that DeepSeek’s last AI model was “earth-shattering” and that its R1 release is even more powerful. He said it’s “roughly on par with the best American models” and described the race between the U.S. and China as an “AI war.” Wang’s company provides training data to key OpenAI, Google and Meta.Trump’s first big move in AI came last week, when his administration announced a joint venture dubbed Stargate between OpenAI, Oracle and SoftBank to invest billions of dollars in AI infrastructure in the U.S.WATCH: DeepSeek is another way China is undermining American players


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