DeepSeek Boasts 'Theoretical' 545% Profit Margins
Chinese AI startup DeepSeek recently made waves by claiming its AI models could be extremely profitable, but there's a catch.
In a post on X, DeepSeek proudly announced that its online services boast a "cost profit margin" of 545%. However, this impressive figure is based on "theoretical income."
They delved deeper into these numbers at the end of a lengthy GitHub post that detailed their strategy for achieving "higher throughput and lower latency." According to the company, if the usage of their V3 and R1 models over a 24-hour period were all billed at R1 pricing, DeepSeek would rake in $562,027 in daily revenue.
On the flip side, the cost to lease the necessary GPUs would only be $87,072.
DeepSeek did acknowledge that their actual revenue falls "substantially lower" due to several factors, such as nighttime discounts, reduced V3 pricing, and the fact that "only a subset of services are monetized," with free access still available on their web and app platforms.
Of course, if they started charging for the app and website, and eliminated other discounts, usage would likely drop. So, these calculations are pretty speculative — more of a nod to what their profit margins could be in the future than a true reflection of DeepSeek's current financial situation.
But DeepSeek is sharing these numbers as part of the larger conversation about AI's costs and potential profitability. The company grabbed headlines in January with a new model that reportedly matched OpenAI's o1 on certain benchmarks, despite being developed at a fraction of the cost and in the face of U.S. trade restrictions that limit Chinese companies' access to the most advanced chips. This news shook up tech stocks and sparked discussions about AI spending.
DeepSeek's tech not only shook Wall Street but also briefly knocked OpenAI's ChatGPT off the top spot on Apple's App Store. However, it's since slipped in the general rankings and now sits at No. 6 in productivity, trailing behind ChatGPT, Grok, and Google Gemini.
Related article
DeepSeek-GRM: Revolutionizing Scalable, Cost-Efficient AI for Businesses
If you're running a business, you know how tough it can be to integrate Artificial Intelligence (AI) into your operations. The high costs and technical complexity often put advance
New Technique Enables DeepSeek and Other Models to Respond to Sensitive Queries
Removing bias and censorship from large language models (LLMs) like China's DeepSeek is a complex challenge that has caught the attention of U.S. policymakers and business leaders, who see it as a potential national security threat. A recent report from a U.S. Congress select committee labeled DeepS
Former DeepSeeker and collaborators release new method for training reliable AI agents: RAGEN
The Year of AI Agents: A Closer Look at 2025's Expectations and Realities2025 was heralded by many experts as the year when AI agents—specialized AI systems powered by advanced large language and multimodal models from companies like OpenAI, Anthropic, Google, and DeepSeek—would finally take center
Comments (40)
0/200
![WillCarter]()
WillCarter
April 11, 2025 at 12:00:00 AM GMT
DeepSeek's claim of a 545% profit margin sounds amazing, but it's all theoretical. It's like saying you can fly if you just believe hard enough. I'm skeptical but curious to see if they can turn theory into reality. Maybe they'll surprise us all!
0
![RichardSmith]()
RichardSmith
April 11, 2025 at 12:00:00 AM GMT
El margen de beneficio del 545% de DeepSeek suena increíble, pero es teórico. Es como decir que puedes volar si crees lo suficiente. Estoy escéptico, pero curioso por ver si pueden convertir la teoría en realidad. ¡Quizás nos sorprendan a todos!
0
![EricYoung]()
EricYoung
April 11, 2025 at 12:00:00 AM GMT
ディープシークの545%の利益率の主張は素晴らしいけど、理論的なものだよね。信じれば飛べるって言うようなものだ。懐疑的だけど、理論を現実に変えられるかどうか見てみたい。もしかしたらみんなが驚くかもね！
0
![MarkWilson]()
MarkWilson
April 11, 2025 at 12:00:00 AM GMT
딥시크의 545% 이익률 주장은 놀랍지만, 이론적인 거예요. 믿기만 하면 날 수 있다고 말하는 거랑 비슷해요. 회의적이지만 이론을 현실로 바꿀 수 있는지 궁금해요. 어쩌면 모두를 놀라게 할지도 몰라요!
0
![ThomasJones]()
ThomasJones
April 11, 2025 at 12:00:00 AM GMT
Le taux de marge bénéficiaire de 545% de DeepSeek semble incroyable, mais c'est théorique. C'est comme dire que vous pouvez voler si vous y croyez assez fort. Je suis sceptique, mais curieux de voir s'ils peuvent transformer la théorie en réalité. Peut-être qu'ils nous surprendront tous !
0
![JackMoore]()
JackMoore
April 11, 2025 at 12:00:00 AM GMT
DeepSeek's claim of a 545% profit margin sounds too good to be true, and it is! 'Theoretical income' is a fancy way of saying 'not real money.' It's like saying you could be a millionaire if you win the lottery. Cool, but not happening. Stick to the real numbers, DeepSeek!
0
DeepSeek-GRM: Revolutionizing Scalable, Cost-Efficient AI for Businesses
If you're running a business, you know how tough it can be to integrate Artificial Intelligence (AI) into your operations. The high costs and technical complexity often put advance
New Technique Enables DeepSeek and Other Models to Respond to Sensitive Queries
Removing bias and censorship from large language models (LLMs) like China's DeepSeek is a complex challenge that has caught the attention of U.S. policymakers and business leaders, who see it as a potential national security threat. A recent report from a U.S. Congress select committee labeled DeepS
Former DeepSeeker and collaborators release new method for training reliable AI agents: RAGEN
The Year of AI Agents: A Closer Look at 2025's Expectations and Realities2025 was heralded by many experts as the year when AI agents—specialized AI systems powered by advanced large language and multimodal models from companies like OpenAI, Anthropic, Google, and DeepSeek—would finally take center
April 11, 2025 at 12:00:00 AM GMT
DeepSeek's claim of a 545% profit margin sounds amazing, but it's all theoretical. It's like saying you can fly if you just believe hard enough. I'm skeptical but curious to see if they can turn theory into reality. Maybe they'll surprise us all!
0
April 11, 2025 at 12:00:00 AM GMT
El margen de beneficio del 545% de DeepSeek suena increíble, pero es teórico. Es como decir que puedes volar si crees lo suficiente. Estoy escéptico, pero curioso por ver si pueden convertir la teoría en realidad. ¡Quizás nos sorprendan a todos!
0
April 11, 2025 at 12:00:00 AM GMT
ディープシークの545%の利益率の主張は素晴らしいけど、理論的なものだよね。信じれば飛べるって言うようなものだ。懐疑的だけど、理論を現実に変えられるかどうか見てみたい。もしかしたらみんなが驚くかもね！
0
April 11, 2025 at 12:00:00 AM GMT
딥시크의 545% 이익률 주장은 놀랍지만, 이론적인 거예요. 믿기만 하면 날 수 있다고 말하는 거랑 비슷해요. 회의적이지만 이론을 현실로 바꿀 수 있는지 궁금해요. 어쩌면 모두를 놀라게 할지도 몰라요!
0
April 11, 2025 at 12:00:00 AM GMT
Le taux de marge bénéficiaire de 545% de DeepSeek semble incroyable, mais c'est théorique. C'est comme dire que vous pouvez voler si vous y croyez assez fort. Je suis sceptique, mais curieux de voir s'ils peuvent transformer la théorie en réalité. Peut-être qu'ils nous surprendront tous !
0
April 11, 2025 at 12:00:00 AM GMT
DeepSeek's claim of a 545% profit margin sounds too good to be true, and it is! 'Theoretical income' is a fancy way of saying 'not real money.' It's like saying you could be a millionaire if you win the lottery. Cool, but not happening. Stick to the real numbers, DeepSeek!
0
