DeepSeek’s AI development cost claims questioned by Google DeepMind boss

Published 10/02/2025, 12:36
© Reuters.

Investing.com -- Demis Hassabis, the head of Alphabet (NASDAQ:GOOGL) Inc.’s Google artificial intelligence (AI) unit, Google DeepMind, has raised doubts over China’s DeepSeek’s claim of spending less than $6 million on its AI system development. Hassabis suggested that the figure reported by DeepSeek might only represent the cost of the final training round, which is just a part of the overall expenditure.

During a conversation with Bloomberg Television, Hassabis refuted the idea that the emergence of DeepSeek has dramatically changed the economics of AI development. The Google DeepMind boss stated that he didn’t observe any groundbreaking technologies that could fundamentally alter the cost structure of AI development. He made these comments on Monday at the Artificial Intelligence Action (WA:ACT) Summit in Paris.

Hassabis also mentioned that DeepSeek appears to have utilized some Western models for its development, although he did not provide further details. He further added that Gemini, another AI system, surpasses DeepSeek in terms of efficiency, considering both training to performance and cost to performance ratios.

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