DeepSeek Has Spent Over $500 Million on Nvidia Chips Despite Low-Cost AI Claims, SemiAnalysis Says

Nvidia shares plunged 17% on Monday, wiping nearly $600 billion from its market value, after Chinese AI firm DeepSeek's breakthrough, but analysts are questioning the cost narrative. DeepSeek said to have trained its December V3 model for $5.6 million, but chip consultancy SemiAnalysis suggested this figure doesn't reflect total investments. "DeepSeek has spent well over $500 million on GPUs over the history of the company," Dylan Patel of SemiAnalysis said. "While their training run was very ef