#DeepsSeek

DeepSeek's $6M AI training cost is misleading—total investment is closer to $1B.

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.