Gregory J. Moore
Don’t take all of the claims about China’s new AI model at face value.
Following the release of DeepSeek (China’s new AI model), Wall Street experienced an unprecedented sell-off of AI-related tech stocks on Monday. This included the single largest loss by one company in one day, the nearly $600 billion lost by Nvidia, maker of the advanced chips that have spurred the race to AI supremacy of late.
The reason for the sell-offs and losses? The reigning narrative seems to be based on two things. First, DeepSeek is reported to have achieved top-ten AI model status by only spending a self-reported $6 million, much less than what is being spent by the world’s leading firms. Second, DeepSeek did it with limited access to state-of-the-art chips that its competitors have been relying on to build their own AI models.
Yet, how do we know that it took only $6 million to build DeepSeek? Chinese companies and the CCP are known for misrepresenting such numbers and for lack of transparency. Are we sure that is all they spent? Companies like Nvidia are losing value because of the statement that DeepSeak only spent $6 million to develop its model, implying that Nvidia and other leading AI development companies have been foolish, wrong-headed, or possibly even profiteering. Yet, we don’t really know how much it cost to build DeepSeek’s model.
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