We collect cookies to analyze our website traffic and performance; we never collect any personal data. Cookie Policy
Accept
NEW YORK DAWN™NEW YORK DAWN™NEW YORK DAWN™
Notification Show More
Font ResizerAa
  • Home
  • Trending
  • New York
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
  • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion
    • Art
  • Health
  • Sports
  • Entertainment
Reading: Dario Amodei challenges DeepSeek’s $6 million AI narrative: What Anthropic thinks about China’s newest AI transfer
Share
Font ResizerAa
NEW YORK DAWN™NEW YORK DAWN™
Search
  • Home
  • Trending
  • New York
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
  • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion
    • Art
  • Health
  • Sports
  • Entertainment
Follow US
NEW YORK DAWN™ > Blog > Technology > Dario Amodei challenges DeepSeek’s $6 million AI narrative: What Anthropic thinks about China’s newest AI transfer
Dario Amodei challenges DeepSeek’s  million AI narrative: What Anthropic thinks about China’s newest AI transfer
Technology

Dario Amodei challenges DeepSeek’s $6 million AI narrative: What Anthropic thinks about China’s newest AI transfer

Last updated: January 30, 2025 2:25 am
Editorial Board Published January 30, 2025
Share
SHARE

The AI world was rocked final week when DeepSeek, a Chinese language AI startup, introduced its newest language mannequin DeepSeek-R1 that appeared to match the capabilities of main American AI techniques at a fraction of the associated fee. The announcement triggered a widespread market selloff that wiped almost $200 billion from Nvidia’s market worth and sparked heated debates about the way forward for AI improvement.

The narrative that shortly emerged advised that DeepSeek had basically disrupted the economics of constructing superior AI techniques, supposedly attaining with simply $6 million what American firms had spent billions to perform. This interpretation despatched shockwaves by Silicon Valley, the place firms like OpenAI, Anthropic and Google have justified huge investments in computing infrastructure to take care of their technological edge.

However amid the market turbulence and breathless headlines, Dario Amodei, co-founder of Anthropic and one of many pioneering researchers behind at present’s massive language fashions (LLMs), printed an in depth evaluation that gives a extra nuanced perspective on DeepSeek’s achievements. His weblog publish cuts by the hysteria to ship a number of essential insights about what DeepSeek truly achieved and what it means for the way forward for AI improvement.

Listed below are the 4 key insights from Amodei’s evaluation that reshape our understanding of DeepSeek’s announcement.

1. The ‘$6 million model’ narrative misses essential context

DeepSeek’s reported improvement prices should be seen by a wider lens, in accordance with Amodei. He straight challenges the favored interpretation:

“DeepSeek does not ‘do for $6 million what cost U.S. AI companies billions.’ I can only speak for Anthropic, but Claude 3.5 Sonnet is a mid-sized model that cost a few $10s of millions to train (I won’t give an exact number). Also, 3.5 Sonnet was not trained in any way that involved a larger or more expensive model (contrary to some rumors).”

This stunning revelation basically shifts the narrative round DeepSeek’s price effectivity. When contemplating that Sonnet was educated 9-12 months in the past and nonetheless outperforms DeepSeek’s mannequin on many duties, the achievement seems extra in step with the pure development of AI improvement prices somewhat than a revolutionary breakthrough.

2. DeepSeek-V3, not R1, was the true technical achievement

Whereas markets and media centered intensely on DeepSeek’s R1 mannequin, Amodei factors out that the corporate’s extra important innovation got here earlier.

“DeepSeek-V3 was actually the real innovation and what should have made people take notice a month ago (we certainly did). As a pretrained model, it appears to come close to the performance of state of the art U.S. models on some important tasks, while costing substantially less to train.”

The excellence between V3 and R1 is essential for understanding DeepSeek’s true technological development. V3 represented real engineering improvements, notably in managing the mannequin’s “Key-Value cache” and pushing the boundaries of the combination of specialists (MoE) technique.

This perception helps clarify why the market’s dramatic response to R1 might have been misplaced. R1 primarily added reinforcement studying capabilities to V3’s basis — a step that a number of firms are at the moment taking with their fashions.

3. Whole company funding reveals a special image

Maybe probably the most revealing facet of Amodei’s evaluation issues DeepSeek’s general funding in AI improvement.

“It’s been reported — we can’t be certain it is true — that DeepSeek actually had 50,000 Hopper generation chips, which I’d guess is within a factor ~2-3X of what the major U.S. AI companies have. Those 50,000 Hopper chips cost on the order of ~$1B. Thus, DeepSeek’s total spend as a company (as distinct from spend to train an individual model) is not vastly different from U.S. AI labs.”

This revelation dramatically reframes the narrative round DeepSeek’s useful resource effectivity. Whereas the corporate might have achieved spectacular outcomes with particular person mannequin coaching, its general funding in AI improvement seems to be roughly akin to its American counterparts.

The excellence between mannequin coaching prices and whole company funding highlights the continued significance of considerable sources in AI improvement. It means that whereas engineering effectivity might be improved, remaining aggressive in AI nonetheless requires important capital funding.

4. The present ‘crossover point’ is non permanent

Amodei describes the current second in AI improvement as distinctive however fleeting.

“We’re therefore at an interesting ‘crossover point’, where it is temporarily the case that several companies can produce good reasoning models,” he wrote. “This will rapidly cease to be true as everyone moves further up the scaling curve on these models.”

This statement offers essential context for understanding the present state of AI competitors. The flexibility of a number of firms to realize related leads to reasoning capabilities represents a short lived phenomenon somewhat than a brand new establishment.

The implications are important for the way forward for AI improvement. As firms proceed to scale up their fashions, notably within the resource-intensive space of reinforcement studying, the sphere is more likely to as soon as once more differentiate based mostly on who can make investments probably the most in coaching and infrastructure. This implies that whereas DeepSeek has achieved a powerful milestone, it hasn’t basically altered the long-term economics of superior AI improvement.

The true price of constructing AI: What Amodei’s evaluation reveals

Amodei’s detailed evaluation of DeepSeek’s achievements cuts by weeks of market hypothesis to reveal the precise economics of constructing superior AI techniques. His weblog publish systematically dismantles each the panic and enthusiasm that adopted DeepSeek’s announcement, displaying how the corporate’s $6 million mannequin coaching price suits throughout the regular march of AI improvement.

Markets and media gravitate towards easy narratives, and the story of a Chinese language firm dramatically undercutting U.S. AI improvement prices proved irresistible. But Amodei’s breakdown reveals a extra complicated actuality: DeepSeek’s whole funding, notably its reported $1 billion in computing {hardware}, mirrors the spending of its American counterparts.

This second of price parity between U.S. and Chinese language AI improvement marks what Amodei calls a “crossover point” — a short lived window the place a number of firms can obtain related outcomes. His evaluation suggests this window will shut as AI capabilities advance and coaching calls for intensify. The sector will possible return to favoring organizations with the deepest sources.

Constructing superior AI stays an costly endeavor, and Amodei’s cautious examination reveals why measuring its true price requires inspecting the complete scope of funding. His methodical deconstruction of DeepSeek’s achievements might in the end show extra important than the preliminary announcement that sparked such turbulence within the markets.

Each day insights on enterprise use instances with VB Each day

If you wish to impress your boss, VB Each day has you lined. We provide the inside scoop on what firms are doing with generative AI, from regulatory shifts to sensible deployments, so you may share insights for optimum ROI.

An error occured.

You Might Also Like

Don’t sleep on Cohere: Command A Reasoning, its first reasoning mannequin, is constructed for enterprise customer support and extra

MIT report misunderstood: Shadow AI financial system booms whereas headlines cry failure

Inside Walmart’s AI safety stack: How a startup mentality is hardening enterprise-scale protection 

Chan Zuckerberg Initiative’s rBio makes use of digital cells to coach AI, bypassing lab work

How AI ‘digital minds’ startup Delphi stopped drowning in consumer knowledge and scaled up with Pinecone

TAGGED:AmodeiAnthropicchallengesChinasDarioDeepSeekslatestmillionmovenarrativethinks
Share This Article
Facebook Twitter Email Print

Follow US

Find US on Social Medias
FacebookLike
TwitterFollow
YoutubeSubscribe
TelegramFollow
Popular News
Trump blames Biden for flamethrower assault on pro-Israel occasion in Colorado
Politics

Trump blames Biden for flamethrower assault on pro-Israel occasion in Colorado

Editorial Board June 2, 2025
President Joe Biden assertion on resolution to pardon his son Hunter: ‘Enough is enough.’
Place menstrual cups rigorously to keep away from potential kidney issues, docs urge
NYC lawmakers pushing invoice to dam Cuomo from utilizing extra taxpayer money to sue AG James
Research finds 25% of youth skilled homelessness in Denver in 2021, considerably greater than identified counts

You Might Also Like

Dario Amodei challenges DeepSeek’s  million AI narrative: What Anthropic thinks about China’s newest AI transfer
Technology

TikTok dad or mum firm ByteDance releases new open supply Seed-OSS-36B mannequin with 512K token context

August 21, 2025
Dario Amodei challenges DeepSeek’s  million AI narrative: What Anthropic thinks about China’s newest AI transfer
Technology

Enterprise Claude will get admin, compliance instruments—simply not limitless utilization

August 21, 2025
Dario Amodei challenges DeepSeek’s  million AI narrative: What Anthropic thinks about China’s newest AI transfer
Technology

CodeSignal’s new AI tutoring app Cosmo needs to be the ‘Duolingo for job skills’

August 20, 2025
Qwen-Picture Edit offers Photoshop a run for its cash with AI-powered text-to-image edits that work in seconds
Technology

Qwen-Picture Edit offers Photoshop a run for its cash with AI-powered text-to-image edits that work in seconds

August 20, 2025

Categories

  • Health
  • Sports
  • Politics
  • Entertainment
  • Technology
  • World
  • Art

About US

New York Dawn is a proud and integral publication of the Enspirers News Group, embodying the values of journalistic integrity and excellence.
Company
  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • Accessibility Statement
Contact Us
  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability
Term of Use
  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© 2024 New York Dawn. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?