Chinese AI startup DeepSeek has stated that it could achieve a 545% cost-profit margin from its AI models, contingent upon every user paying. The company shared this projection via a GitHub post, highlighting that its daily operational costs amount to $87,072, based on the leasing of Nvidia chips. However, only a portion of its services are monetized, and the profit margin calculation is based solely on premium R1 pricing, disregarding significantly lower V3 rates and other variable pricing strategies, raising skepticism about the feasibility of such revenue figures.
"DeepSeek has projected a cost-profit margin of 545% for its AI models, but this highly theoretical figure relies on all users opting for a paid plan."
"The startup's calculations assume that all services currently offered for free would be converted to a paid model, something no competing company has achieved."
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