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  • February 3, 2025
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The reactions to the new DeepSeek-R1 AI model in recent days seem limitless. Some say it runs so much faster than existing models that we will no longer need the billions of dollars in compute hardware that big tech is preparing to buy.

Is that plausible?

To get an answer, we need only look back at the experience of the recently-completed Exascale Computing Project. This large scale multi-lab project was tasked with developing technology (primarily software) to prepare for exascale computing, which has recently been achieved by Frontier, Aurora and El Capitan.

During the course of the project, various algorithm and implementation improvements were discovered by the the science teams, these leading to as much as 60X speedup or more, over and above speedups possible from hardware alone [1]. In response, are the teams just running the very same problems faster on older hardware? No — instead, they are now able to run much, much larger problems than previously possible, exploiting both hardware and software improvements.

Or suppose today there were no such thing as the fast Fourier transform (FFT) and scientists were computing Fourier transforms using (essentially) large dense matrix-vector products. If someone then discovered the FFT, I’d guarantee you that scientists would not only say, (1) “Wow, now I can run my existing problems much, much faster,” but also, (2) “Wow, now I can run problems much larger than I ever dreamed and solve problems larger than I could have ever imagined!”

Paradoxically, faster algorithms might even increase the demand for newer, faster hardware. For example, a new faster algorithm for designing medications to cure cancer might be judged so important that it’s worth building the largest machine possible to run it effectively.

All this is not to say whether you should buy or sell Nvidia stock right now. However, it does mean that there is no simplistic argument that faster algorithms and implementations necessarily lead to lower spend on computing hardware. History shows that sometimes this is not true at all. The smart money, on the other hand, is on research teams that are able to exploit any and every new discovery to improve what is possible with their codes, whether by hardware, data, code optimizations or algorithms.

Notes

[1] See slide 9 from Doug Kothe’s talk, “Exascale and Artificial Intelligence: A Great Marriage“. The “Figure of Merit” (FOM) number represents speedup of science output from an application compared to an earlier baseline system. Specifically, a FOM speedup of 50X is the anticipated speedup from baseline due to efficient use of hardware only, for example, on Frontier compared to the earlier OLCF Titan system.

The post DeepSeek-R1: Do we need less compute now? first appeared on John D. Cook.

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