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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.
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