DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

So, let's consider a few facts for a moment. Reuters reports that DeepSeek's development entailed 2,000 of Nvidia's H800 GPUs and a training budget of just $6 million, while CNBC claims that R1 "outperforms" the best LLMs from the likes of OpenAI and others.

DeepSeek claims it costs them less than $6 million to train its latest AI models, while it costs ChatGPT $100 million. DeepSeek is able to charge only $0.14 per 1 million input tokens, compared to $15 at OpenAI. Token input pricing has to do with the amount of text that goes into training the AI language models.

Nvidia called DeepSeek's R1 model "an excellent AI advancement," despite the Chinese startup's emergence causing the chip maker's stock price to plunge 17%.

Nvidia shares plummeted after a new Chinese A.I. app, DeepSeek, sent investors fleeing. Ron Insana and Brendan Greeley discuss what the developments mean for the intensifying A.I. race.