Deepseek Claims ‘Theoretical’ Profit Margins of 545%
Chinese In Post on X, Deepseek Boasted That its online Services have a “Cost Profit Margin” of 545%. Howver,
Deepseek Claims ‘Theoretical’ Profit Margins of 545%
Chinese
In A Post on X, Deepseek Boasted That its online Services have a “Cost Profit Margin” of 545%. Howver, That Margin is Calculated Based on “Theoretical income.”
It discussed these numbers in More Detail at the End of A Longer Github Postlining its Approach to Achiev the Company Wrete That it Look at Usage of Its V3 and R1 Model Period A 24-Hour Period, if it usage Had all ben Billed Using R1 Pricing, Already have $ 562,027 in Daily Revenue.
Meanwhile, The Cost of Leasing the Necessary GPUS (Graphics Processing Units) Would Have Been Just $ 87,072.
The Company ADMITED that its Actual Revenue is “Substantially Lower” for A Variety of Reasons, Like Nighttime Discounts, Lower Pricing for V3, and The Facts “Only a Subset of Services are Monetized,” Free.
Of coations, if the app and website wereren’t free, and if other discounts wereren’t Availble, USAGE WOUD PRESUMABLY BE MUCH LOWER. So these Calcularions see to be highly speculatite.
But the Company is sharing these numbers Amidst Broader Debates About AI’s Cost and Potential Profitability. DeepSeek leapt into the spotlight in January, with a new model that supposedly matched OpenAI’s o1 on certain benchmarks, despite being developed at a much lower cost, and in the face of US trade restrictions that prevent Chinese companies from accessing the most Powerful Chips. Tech Stocks Tumbled and Analysts Raised Questions About AI Spending.
Deepseek’s Tech Didn’t Just Rattle Wall Street. ITS App Brifly Displaced OpenAI’s Chatgpt at the top of the apple’s app store