DeepSeek was reportedly developed for a fraction of the cost of its rivals, raising questions about the future of America’s AI dominance and the scale of investments US firms are planning.
The company behind ChatGPT – OpenAI – has been a global leader in the burgeoning field and Nvidia has become one of the highest valued companies in the world, when measured by market capitalization. OpenAI CEO Sam Altman joined financial and other firms at a White House event last week, where they pledged to invest $500bn (£400bn) in building AI infrastructure in the US.
There are no firm reports on how much it cost to build ChatGPT, but based on reporting from The Information, many people believe it took $540mn, nearly 100 times the cost of DeepSeek.
DeepSeek’s possibly lower costs roiled financial markets on 27 January, leading the tech-heavy Nasdaq to fall more than 3%. Nvidia was down more than 12% on the morning of 27 January. Microsoft lost roughly 4% percent, and Oracle dipped more than 7%.
BBC News
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