DeepSeek AI Cost Less Than $6 Million to Develop. Here’s Why Meta and Microsoft Are Justifying Spending Billions.

Chinese AI startup DeepSeek burst on the scene this week with its latest AI model, which the startup claims performs as well as leading AI from OpenAI, Meta, and Anthropic — but at a far lower cost to develop. DeepSeek said their total training costs amounted to just $5.576 million — much cheaper than the $100 million to $1 billion Anthropic CEO Dario Amodei says it costs U.S. startups to train AI today.

However, in earnings calls on Wednesday, leaders at Microsoft and Meta separately affirmed their plans to continue to spend heavily on AI, even though DeepSeek showed that it was possible to spend less and still develop a

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