🇨🇳$500 MILLION FOR DEEPSEEK: IS IT A FAIRY TALE?
Let's be real: claiming that DeepSeek cost $500 million to build seems like an exaggeration. Why?
1. Labor costs: Chinese labor costs about 20% less than American labor. Taking this difference alone, the budget would be closer to $2.5 billion. 2. Energy costs: Electricity in China is 124% cheaper than in the United States.
3. Construction and equipment: Cheaper materials and production costs significantly reduce expenses, from 30% to 80%, depending on the project.
Sure, construction in China is cheaper, but comparing it to something like OpenAI in the United States is like comparing a house in Wuhan to Trump Tower in New York.
Sounds good on paper, but is it really on the same level?
Source: statista, famisourcing
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