DeepSeek Claims a 545% Profit Margin

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.

- BLOOMBERG

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.