DeepSeek claims 545% cost-profit ratio, challenging AI industry economics

DeepSeek claims 545% cost-profit ratio, challenging AI industry economics

However, the company noted actual earnings are significantly lower due to free web and app access, lower V3 model costs, and discounted developer rates during off-peak hours.

This is the first time the Hangzhou-based company has disclosed profit margins from inference tasks, where trained AI models generate responses or perform functions like chatbot interactions.

Authenticity and enterprise impact

Analysts say DeepSeek’s focus on scalability and efficiency is notable,…

Article Source
https://www.computerworld.com/article/3837452/deepseek-claims-545-cost-profit-ratio-challenging-ai-industry-economics.html