DeepSeek Reveals Theoretical Margin on Its AI Models Is 545%
DeepSeek that its online service had a “cost profit margin of 545%.”
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Chinese artificial intelligence phenomenon DeepSeek revealed some financial numbers on Saturday, saying its “theoretical” profit margin could be more than five times costs, peeling back a layer of the secrecy that shrouds business models in the AI industry.
The 20-month-old startup that rattled Silicon Valley with its innovative and inexpensive approach to building AI models, said on X its V3 and R1 models’ cost of inferencing to sales during a 24-hour-period on the last day of February put profit margins at 545%.