Ammon News - A Chinese start-up startup is grabbing the giant global tech firms by the horns, which has surprised the worldwide markets. DeepSeek has disrupted the foundations of major American companies such as Nvidia, OpenAI, Google, and Meta, all of whom have dominated the AI sector for years. Microsoft’s stock dropped 3.8%, TSMC’s U.S. stock slid 14%, and shares of AI chip pioneer Nvidia fell 16%.
DeepSeek appears to have the advantage of being a low-cost model and, most crucially, open source. However, the reality of DeepSeek’s claim about low cost is already being debated in the AI community.
Elon Musk, CEO of Tesla and X, has suggested that DeepSeek, an upstart artificial intelligence business, may have approximately 50,000 NVIDIA Hopper GPUs. This contrasts with DeepSeek’s claim to have 10,000 A100s.
Musk’s perspective was expressed in response to previous comments by Alexandr Wang, the millionaire CEO of Scale AI, who also indicated that DeepSeek most certainly has 50,000 NVIDIA H100 GPUs.
DeepSeek claims it took only two months and cost less than $6 million to create an AI model utilizing Nvidia’s less powerful H800 CPUs. Financial Express