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DeepSeek Claims a 545% Profit Margin
Financial Express Kochi
|March 02, 2025
CHINESE ARTIFICIAL INTELLIGENCE phenomenon DeepSeek revealed some financial numbers on Saturday, saying its "theoretical" profit margin could be more than five times costs, peeling back a layer of the secrecy that shrouds business models in the AI industry.
The 20-month-old startup that rattled Silicon Valley with its innovative and inexpensive approach to building AI models, said on X its V3 and R1 models' cost of inferencing to sales during a 24-hour period on the last day of February put profit margins at 545%.
Inferencing refers to the computing power, electricity, data storage and other resources needed to make AI models work in real time.
This story is from the March 02, 2025 edition of Financial Express Kochi.
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