China's DeepSeek Reports 545% Theoretical Daily Profit Margin, Even Though ChatGPT-Maker OpenAI Is Yet To Turn A Profit

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China's DeepSeek Reports 545% Theoretical Daily Profit Margin, Even Though ChatGPT-Maker OpenAI Is Yet To Turn A Profit - Benzinga

Quick Summary:

What Happened: In a GitHub post, DeepSeek detailed that its AI inference costs—associated with running trained models—amount to $87,072 per day, assuming a rental price of $2 per hour for each Nvidia Corp.’s (NASDAQ:NVDA) H800 chip, reported Reuters.

On Saturday, Chinese AI startup DeepSeek revealed cost and revenue estimates for its popular V3 and R1 models, showing a theoretical cost-profit ratio of up to 545% per day.

In contrast, it estimates daily revenue of $562,027, equating to an annualized revenue of over $200 million.