Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Meta's chief AI scientist says market reaction to DeepSeek was 'woefully unjustified.' Here's why.

Jan 30, 2025 - businessinsider.com
DeepSeek, a Chinese AI company, has caused a stir in Silicon Valley by releasing a model that outperformed those from leading US developers like OpenAI and Meta, while being significantly cheaper. This has led to a tech market sell-off, with Nvidia losing a substantial portion of its market value. Despite the panic, Meta's chief AI scientist, Yann LeCun, argues that the reaction is unwarranted, emphasizing that the real costs in AI are related to inference rather than training. As AI systems become more advanced, inference costs are expected to rise, especially for large-scale applications.

In response to the growing demand for AI infrastructure, major tech companies are increasing their investments. Meta plans to spend over $60 billion by 2025 to enhance its AI capabilities, while a new joint venture called Stargate, involving OpenAI, Oracle, and SoftBank, aims to invest up to $500 billion in US AI infrastructure. While some expect inference costs to eventually decrease due to increased competition, this is likely only for smaller-scale systems, with large-scale services facing higher expenses.

Key takeaways:

  • DeepSeek's latest AI model outperformed those from OpenAI and Meta on third-party benchmarks, causing panic among US AI companies.
  • DeepSeek offers significantly cheaper pricing for its models compared to competitors, with its R1 model costing $0.55 per million tokens versus OpenAI's $15.
  • Meta's chief AI scientist, Yann LeCun, argues that the market's reaction to DeepSeek is unjustified, emphasizing that inference costs will rise as AI tools become more sophisticated.
  • Major investments in AI infrastructure are being made, with Meta planning over $60 billion in capital expenditures for 2025 and a joint venture, Stargate, funneling up to $500 billion in AI infrastructure across the US.
View Full Article

Comments (0)

Be the first to comment!