That’s an astonishingly “cheap” amount for a frontier LLM, as DeepSeek trained its hit R1 reasoning model at a reported cost of $5-$6 million, while the training cost of OpenAIs’ GPT-4 — a more than two-year-old model now — was said to exceed $100 million. This cost comes from both the price of graphics processing units (GPUs), the massively parallel computing hardware primarily manufactured by companies like Nvidia, which can cost $20,000–$30,000 or more per module, and from the energy required to run those chips continuously in large-scale data centers.
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