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.
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Comments (43)
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Wait, 'theoretical income'? That's like saying I'm a billionaire in theory if I count all the lottery tickets I might win someday. 😂 Interesting marketing spin, but it feels a bit misleading. Still, if their actual costs are that low, it could really shake up the pricing for everyone else. Makes you wonder about the real numbers behind the scenes.
DeepSeek's 545% profit margin sounds wild, but 'theoretical income'? 🤔 Kinda feels like bragging about winning a race before it starts.
Wow, 545% profit margin sounds insane, but 'theoretical income'? 🤔 That’s like me saying I’m a billionaire in my dreams! Curious how DeepSeek’s AI actually performs in the real world.
El margen de beneficio del 545% de DeepSeek suena increíble, pero ¿todo es 'teórico'? Eso es un poco decepcionante. Quiero decir, soñar en grande está bien, pero veamos algunos números reales, ¿de acuerdo? 🤔💸
¡La afirmación de DeepSeek de márgenes de beneficio del 545% suena demasiado bueno para ser verdad! ¿'Ingresos teóricos'? 🤔 Es como decir que eres millonario en Monopoly. Aún así, es intrigante ver a dónde va esto. Tal vez realmente lo logren, ¿quién sabe? ¡Manten-nos informados, DeepSeek! 🚀

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Wait, 'theoretical income'? That's like saying I'm a billionaire in theory if I count all the lottery tickets I might win someday. 😂 Interesting marketing spin, but it feels a bit misleading. Still, if their actual costs are that low, it could really shake up the pricing for everyone else. Makes you wonder about the real numbers behind the scenes.
DeepSeek's 545% profit margin sounds wild, but 'theoretical income'? 🤔 Kinda feels like bragging about winning a race before it starts.
Wow, 545% profit margin sounds insane, but 'theoretical income'? 🤔 That’s like me saying I’m a billionaire in my dreams! Curious how DeepSeek’s AI actually performs in the real world.
El margen de beneficio del 545% de DeepSeek suena increíble, pero ¿todo es 'teórico'? Eso es un poco decepcionante. Quiero decir, soñar en grande está bien, pero veamos algunos números reales, ¿de acuerdo? 🤔💸
¡La afirmación de DeepSeek de márgenes de beneficio del 545% suena demasiado bueno para ser verdad! ¿'Ingresos teóricos'? 🤔 Es como decir que eres millonario en Monopoly. Aún así, es intrigante ver a dónde va esto. Tal vez realmente lo logren, ¿quién sabe? ¡Manten-nos informados, DeepSeek! 🚀





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