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The DeepSeek Effect: How China Built a Frontier AI Competitor at a Fraction of the Cost

The DeepSeek Effect: How China Built a Frontier AI Competitor at a Fraction of the Cost

DeepSeek reported $5.6M in GPU training costs for V3, though total investment is disputed. How they achieved remarkable efficiency despite US chip sanctions, and what it means for AI economics.

Jan 3, 2026·7 min read
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