Chinese AI startup DeepSeek has stirred conversation in the tech community by claiming that its AI models could achieve a “cost profit margin” of 545% under ideal conditions.
In a post on X, the company presented calculations based on “theoretical income” that suggest its online services, if fully billed at premium rates, could generate substantial daily revenue relative to operating costs.
According to DeepSeek, a 24-hour period of usage for its V3 and R1 models would yield an estimated $562,027 in revenue if all usage were billed at R1 pricing. In contrast, the cost of leasing the necessary GPUs for this level of service would have been approximately $87,072. These figures, detailed at the end of a longer GitHub post outlining its strategy for achieving higher throughput and lower latency, imply impressive profit margins when operating under optimal conditions.
However, DeepSeek acknowledged that actual revenue figures are “substantially lower” due to several factors. These include nighttime discounts, reduced pricing for its V3 model, and the fact that only a subset of its services is monetized—with its app and website remaining free to users. Critics note that while the calculations offer a glimpse into potential future profitability, they remain highly speculative given the various discounts and free offerings that currently impact overall revenue.
DeepSeek’s announcement comes amid broader industry debates over the cost structure and profit potential of AI services. The startup previously captured headlines in January when it unveiled a new model that, according to some benchmarks, matched the performance of OpenAI’s offerings despite being developed at a significantly lower cost and under the constraints of U.S. trade restrictions on powerful chips.
The company’s technology has also made an impact in the consumer space. At one point, the DeepSeek app briefly displaced OpenAI’s ChatGPT at the top of Apple’s App Store rankings before falling to a current position of #6 in the productivity category—positioned behind ChatGPT, Grok, and Google Gemini.
As the race for efficient and profitable AI technologies continues, DeepSeek’s bold profit margin claims underscore the high stakes and rapid innovation defining the industry. While the figures may point to an optimistic future, experts remain cautious, emphasizing that real-world performance and market dynamics will ultimately determine the financial viability of such models.
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U.S. envoy Steve Witkoff met Putin in Moscow to advance peace talks on Ukraine. This follows Trump’s criticism of a deadly Russian missile strike on Kyiv, but Trump remains optimistic about reaching a deal. Witkoff also met with Russia’s investment envoy, Dmitriev.
On April 24-25, Russian drone strikes on Dnipropetrovsk Oblast killed 3, including a 15-year-old girl, and injured 14, including 3 children. The attack caused fires, infrastructure damage, and power outages. Ukrainian air defenses destroyed 11 drones, with ongoing recovery efforts.
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A magnitude-6.3 earthquake jolted Ecuador’s Pacific coast near Esmeraldas early Friday, sending residents into the streets but causing no immediate damage or tsunami alert, according to the European-Mediterranean Seismological Centre.
In an expansive interview marking his first 100 days back in office, President Donald Trump sketched out an agenda that touches everything from punitive tariffs and China policy to cease-fire hopes in Ukraine and an overhaul of domestic programmes. Below are the highlights.
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China has rolled out the world’s first 10-gigabit (10G) fixed broadband network in Xiong'an New Area, promising ultra-fast speeds and low latency through cutting-edge optical infrastructure.
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U.S. envoy Steve Witkoff met Putin in Moscow to advance peace talks on Ukraine. This follows Trump’s criticism of a deadly Russian missile strike on Kyiv, but Trump remains optimistic about reaching a deal. Witkoff also met with Russia’s investment envoy, Dmitriev.
On April 24-25, Russian drone strikes on Dnipropetrovsk Oblast killed 3, including a 15-year-old girl, and injured 14, including 3 children. The attack caused fires, infrastructure damage, and power outages. Ukrainian air defenses destroyed 11 drones, with ongoing recovery efforts.
The U.S. is set to offer Saudi Arabia a weapons deal worth over $100B during Trump’s visit in May. The package includes advanced systems like drones and C-130 planes, with discussions on F-35 jets. The deal follows Biden’s failed defense pact negotiations.
A magnitude-6.3 earthquake jolted Ecuador’s Pacific coast near Esmeraldas early Friday, sending residents into the streets but causing no immediate damage or tsunami alert, according to the European-Mediterranean Seismological Centre.
In an expansive interview marking his first 100 days back in office, President Donald Trump sketched out an agenda that touches everything from punitive tariffs and China policy to cease-fire hopes in Ukraine and an overhaul of domestic programmes. Below are the highlights.
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