DeepSeek, a Chinese AI startup, claims a potential profit margin of 545% under ideal usage scenarios, calculated against its V3 and R1 models. The company's assertions, however, are speculative as actual revenue is significantly lower, impacted by discounts and the fact that many services remain free. Despite these challenges, DeepSeek's models gained attention for their competitive performance against major players like OpenAI, and even reached the top of Apple's App Store, although their app's ranking has fluctuated since then. The claims highlight ongoing debates about AI profitability and future growth prospects in the sector.
DeepSeek's claims of a 545% profit margin are theoretical, relying on ideal usage scenarios and not reflecting actual revenue, which is much lower due to various discounts.
The company admits that its actual revenue is "substantially lower" than projected figures due to discounts and the choice to keep some services free, raising questions about sustainability.
DeepSeek's V3 and R1 models could generate substantial revenue if fully monetized; however, the projections they share paint a speculative picture rather than reality.
Despite operating under trade restrictions, DeepSeek made headlines in January for its competitive AI performance, causing shifts in market reactions toward tech stocks.
Collection
[
|
...
]