Dan Ives: Chinese Startup DeepSeek's $6M AI Claim 'Likely Fiction'

Wedbush Securities analyst Dan Ives has expressed skepticism over Chinese startup DeepSeek's claim of developing its AI model, R1, for under $6 million. In a tweet, Ives stated that the assertion is "likely a fictional story." DeepSeek has been making waves in the AI industry, with its model surpassing OpenAI's ChatGPT in popularity on the Apple Store.



Ives' comments come amidst a backdrop of concern among investors in the AI supply chain, including Nvidia, ASML, Arm Holdings, and Super Micro Computer. The worry stems from DeepSeek's claim that it developed its large language model (LLM) AI with $6 million and none of Nvidia's newest and fastest GPU chips. If true, this could challenge the notion that cutting-edge AI models require vast amounts of capital and the most advanced hardware.

However, Ives is not alone in his skepticism. OpenAI has found evidence suggesting that DeepSeek may have used its proprietary models to train the open-source competitor. Additionally, Josh Kushner, a major investor in OpenAI, has criticized colleagues who publicly supported DeepSeek, alleging that the Chinese model was trained using U.S. technology and possibly violated export controls.

Despite the skepticism, DeepSeek's emergence has sent shockwaves through the global AI market. The company's success has raised national security concerns, similar to those surrounding TikTok. The White House has also put DeepSeek under scrutiny over potential national security risks.

In conclusion, while DeepSeek's claims of developing its AI model for under $6 million have raised eyebrows and caused market turmoil, industry experts remain skeptical. The true impact of DeepSeek's success on the global AI market, particularly for U.S. tech companies and investors, remains to be seen. As the AI landscape continues to evolve, investors and industry players will need to stay informed and adapt to the changing dynamics of the market.