Get the latest tech news

DeepSeek claims ‘theoretical’ profit margins of 545%


Chinese AI startup DeepSeek recently declared that its AI models could be very profitable — with some asterisks. In a post on X, DeepSeek boasted that its

So these calculations seem to be highly speculative — more a gesture towards potential future profit margins than a real snapshot of DeepSeek’s bottom line right now. But the company is sharing these numbers amidst broader debates about AI’s cost and potential profitability. DeepSeek leapt into the spotlight in January, with a new model that supposedly matched OpenAI’s o1 on certain benchmarks, despite being developed at a much lower cost, and in the face of U.S. trade restrictions that prevent Chinese companies from accessing the most powerful chips.

Get the Android app

Or read this on TechCrunch

Read more on:

Photo of profit margins

profit margins

Photo of DeepSeek

DeepSeek

Related news:

News photo

China's DeepSeek claims theoretical cost-profit ratio of 545% per day

News photo

DeepSeek Reveals Theoretical Margin on Its AI Models Is 545%

News photo

DeepSeek: Everything you need to know about the AI chatbot app