Li Yanhong Discusses DeepSeek: Costs of Large Models Have Decreased by Over 90% Annually

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Published inAI News · 4 min read · Feb 11, 2025

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Recently, the World Government Summit (WGS) grandly opened in Dubai, UAE, attracting the attention of elites from around the globe. During the summit, Baidu founder Robin Li engaged in an in-depth dialogue with the UAE's AI Minister to explore the latest trends in the field of AI.

In the conversation, Robin Li specifically mentioned Baidu's innovative achievements in AI inference—DeepSeek. He stated that innovation is not limited to the AI field or the IT industry, but is widespread across various sectors, with most innovations closely related to cost reduction.

He pointed out that the speed of innovation today is faster than ever before. Moore's Law reveals the pace of technological advancement, indicating that every 18 months, computer performance doubles while prices halve. This trend is equally applicable in the AI field, especially regarding the cost of large model inference, which is decreasing at an astonishing rate of over 90% each year.

DeepSeek large language model algorithm, DeepSeek AI

This trend of cost reduction is bringing profound transformative impacts. With significant decreases in inference costs, companies can deploy AI models more efficiently and economically, greatly alleviating the burden of training costs. This not only promotes the widespread application of AI technology but also provides unprecedented market growth opportunities for companies focused on AI inference, such as cloud service providers, edge computing enterprises, and AI application developers.

Robin Li emphasized that the sharp decline in innovation costs is expected to break the market monopoly of major corporations, creating new market space for medium-sized tech companies and even startups. This means that more businesses can easily enter and establish themselves in the AI field, collectively driving the prosperity and development of the entire industry.

However, despite the strong overall growth momentum in the AI field, the current growth dividends are mainly captured by tech giants like Amazon, Microsoft, and Oracle. Robin Li called for attention and support for smaller tech companies so that they can also enjoy the benefits of AI development and collectively promote the popularization and application of AI technology.

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