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Palmer Luckey accuses DeepSeek of lying about AI model costs: 'The $5m number is bogus'

03-02-2025 09:50 AM


Ammon News - Palmer Luckey, the 32-year-old American tech entrepreneur, has cast doubt on the bold claims made by Chinese AI startup DeepSeek, and also accused the US media of blindly reporting the company's statements without doing much research.

In an exclusive interview on FOX Business' The Claman Countdown on 28th January, Palmer Luckey questioned reports suggesting that DeepSeek had trained an AI model for just £4.01 million ($5 million)—a fraction of the billions spent on comparable American models. His scepticism adds to growing concerns that DeepSeek's claims may be exaggerated, with some critics fearing the company's messaging could be influenced by Chinese Communist Party (CCP) propaganda.

Luckey, who sold Oculus to Facebook for billions and founded the defence firm Anduril, pointed out that DeepSeek hasn't disclosed the full costs of both its AI models. He criticised the media for overlooking the fact that a substantial portion of the startup's infrastructure costs remain undisclosed.

'I think the problem is they put out that number specifically to harm US companies. You had a lot of useful idiots in US media kind of just mindlessly reporting that that's the case, and neither China nor the media nor DeepSeek has any kind of incentive to correct the record as a lot of US companies like Nvidia crashed to the tunes of hundreds of billions of dollars,' Luckey said. IB Times UK




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