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DeepSeek vs OpenAI vs Anthropic Energy Efficiency

DeepSeek vs. OpenAI, Anthropic: Energy Efficiency and Power Consumption Comparisons, AI Chip Requirements, And More

February 3, 2025 by Joe Panettieri

How does DeepSeek compare against OpenAI and Anthropic in terms of energy efficiency and associated AI chip requirements? Glad you asked. Here's a look at energy efficiency and sustainability claims for each of the major Generative AI platforms -- and the potential implications for IT service providers and data center companies.

First, some background: DeepSeek, founded in 2023 by Liang Wenfeng, is based in China. An earlier Wenfeng company apparently amassed 10,000 Nvidia A100 graphics processors to run various AI tasks. Wenfeng began building that older cluster before the Biden Administration restricted sales of such chips to China, according to The Associated Press.

When the DeepSeek R1 AI model gained U.S. media coverage in January 2025, the coverage rocked U.S. stock markets. DeekSeek said the free, open-source large language model took only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s, CNBC reported.

The result: Some pundits believe DeepkSeek's software runs more efficiently than OpenAI and Anthropic. In theory, that means DeepSeek may require fewer AI processors than rival options for similar tasks. As a result, shares in Nvidia fell 17% on January 27, 2025.

Energy efficient AI applications are particularly important for data center providers -- many of which are struggling to find more power sources to effectively run AI applications.

Despite DeepSeek's potential benefits, some countries and government government agencies are banning DeepSeek amid privacy concerns.

Now that you've got some context, here's a timeline tracking various DeepSeek business milestones, and energy efficiency claims -- especially in comparison to OpenAI and Anthropic. Check back regularly for more updates.

DeepSeek vs OpenAI and Anthropic: Energy Efficiency & Business News for January 2025

January 31, 2025 - Did DeepSeek Cost $1.6 Billion to Build?: Research from SemiAnalysis suggests that DeepSeek cost far more to build than previously disclosed. The firm states: "Our analysis shows that the total server CapEx for DeepSeek is ~$1.6B, with a considerable cost of $944M associated with operating such clusters." The result: DeepSeek may not be as disruptive as claimed, according to Tom's Hardware.

January 31, 2025 - Energy Consumption Question Marks: At first glance, DeepSeek may be more energy efficient than OpenAI and Anthropic. But here's the twist: The energy DeepSeek saves in training "is offset by its more intensive techniques for answering questions, and by the long answers they produce," MIT Technology Review reports. In other words, DeepSeek might not be such good news for energy efficiency after all, the MIT publication said. And that may mean that DeepSeek applications will require lots of AI chips from Nvidia (or rival hardware providers) to process user queries, Sustainable Tech Partner believes.

January 27, 2025 - Big Boom Moment: Wall Street investors discover news about DeepSeek, and speculate that the China-based AI platform could disrupt generative AI software startups such as OpenAI and Anthropic, and underlying hardware providers such as Nvidia. The fallout: Nvidia's stock fell 17% amid a U.S. market panic about DeepSeek.

January 22, 2025 - Stargate Launches: U.S. President Donald Trump, Oracle Chairman Larry Ellison, SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman announce Stargate -- a new company focused on AI-centric data center infrastructure. Take a closer look, and Stargate will leverage renewable energy to run AI applications.

April 22, 2024 - Renewable Energy for AI Data Centers: OpenAI CEO Sam AltmanAndreessen Horowitz General Partner Katherine Boyle, and multiple venture capital firms are funding Exowatt, a renewable energy startup that wants to offer cost-effective power for generative AI applications and data centers.

Note: Check back regularly for more updates. If you have news or perspectives to share, please email me: Joe@MentoreVentures.com.

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