"OpenAI's initial subscription model failed to account for high operational costs, forcing a price increase to $200, yet profitability remains elusive on both tiers."
"DeepSeek's theoretical profit margin of 545% arises from lower GPU costs and a smaller team, though skepticism exists regarding trustworthiness and mainstream adoption."
The article discusses OpenAIâs initial pricing strategy for its generative AI subscription, initially set at $20, which became untenable due to high GPU costs. The company moved to a $200 subscription for premium access to its models but still struggles with profitability. In contrast, DeepSeek claims a profit margin of 545%, attributed to lower operational costs and a smaller team. However, skepticism about DeepSeek's reliability exists due to its Chinese origin. This situation raises questions about the viability of AI pricing models and long-term profitability.
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