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- DeepSeek R2 rumored 98%+ cheaper than GPT-4o, trained on Huawei chips
DeepSeek R2 rumored 98%+ cheaper than GPT-4o, trained on Huawei chips


Top stories today:
- DeepSeek R2 rumored 98%+ cheaper than GPT-4o
- Elon’s XAI Holdings said to raise $20B at $120B+ valuation
- Huawei said to have developed Ascend 910D to rival NVIDIA’s AI chips
- Deel sues Rippling for defamation as rivalry escalates
- Neuralink’s ALS patient shares experience regaining communication
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Listen to our AI-generated podcast summarizing today’s newsletter (beware of hallucinations):
1. DeepSeek R2 rumored 98%+ cheaper than GPT-4o, trained on Huawei chips

1.2T parameter size, with 78B active parameters using a hybrid Mixture of Experts (MoE) architecture.
89.8% scores on the C-Eval 2.0 benchmark.
92.4% scores on COCO for vision capabilities.
Achieved 82% utilization of Huawei’s Ascend 910B AI chip cluster.
TBD: the exact release date.
Jan.: DeepSeek disrupted the AI market with its R1 reasoning model release.
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3. Elon’s XAI Holdings said to raise $20B at $120B+ valuation

Representational image generated using xAI’s Grok.