DeepSeek reveals theoretical 545% profit margins on its AI models


The 20-month-old start-up DeepSeek admits its actual revenues are substantially lower, citing various reasons. -- PHOTO: BLOOMBERG

BEIJING (Bloomberg): 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%.

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