βš™οΈ AI Hardware

LLMs 2025: Reasoning Frenzy Hides the Real Cost Crunch

Your chatbot's about to 'think' harder, but don't expect miracles. 2025's reasoning boom means cheaper models for tinkerers, yet big tech still hoards the profits.

Chart of plummeting LLM training costs from DeepSeek R1 paper in 2025

⚑ Key Takeaways

  • DeepSeek R1 democratized reasoning models with RLVR/GRPO at ~$5M training costs.
  • 2025 focus: Post-training scaling over raw pre-training horsepower.
  • Hype alert: Progress real, but hallucinations and profits stay with big tech.

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Priya Sundaram
Written by

Priya Sundaram

Hardware and infrastructure reporter. Tracks GPU wars, chip design, and the compute economy.

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Originally reported by Ahead of AI

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