$500 MILLION FOR DEEPSEEK: IS IT A  FAIRY TALE?Let's be  real

Started by bosman, 2025-01-27 08:42

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🇨🇳$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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