So, let's consider a few facts for a moment. Reuters reports that DeepSeek's development entailed 2,000 of Nvidia's H800 GPUs and a training budget of just $6 million, while CNBC claims that R1 "outperforms" the best LLMs from the likes of OpenAI and others.

DeepSeek claims it costs them less than $6 million to train its latest AI models, while it costs ChatGPT $100 million. DeepSeek is able to charge only $0.14 per 1 million input tokens, compared to $15 at OpenAI. Token input pricing has to do with the amount of text that goes into training the AI language models.

Chinese AI company DeepSeek says its DeepSeek R1 model is as good, or better than OpenAI's new o1 says CEO: powered by 50,000 NVIDIA H100 AI GPUs.

The market reaction proved particularly severe for Nvidia (NASDAQ: NVDA), with shares plummeting and erasing half a trillion in market cap at the time of this writing. To put this staggering figure in perspective,

Top of the line GPUs. DeepSeek has said it has access to 10,000 of Nvidia’s older generation A100 GPUs—chips that were obtained before the U.S. imposed export controls that re