Topics
Latest
AI
Amazon
Image Credits:VCG / Getty Images
Apps
Biotech & Health
Climate
Cloud Computing
Department of Commerce
Crypto
Enterprise
EVs
Fintech
Fundraising
appliance
Gaming
Government & Policy
ironware
layoff
Media & Entertainment
Meta
Microsoft
concealment
Robotics
protection
societal
blank space
Startups
TikTok
transport
Venture
More from TechCrunch
event
Startup Battlefield
StrictlyVC
newssheet
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
adjoin Us
Chinese AI startup DeepSeek latterly declare that its AI model could be very profitable — with some asterisks .
Ina station on X , DeepSeek boasted that its on-line services have a “ cost net profit margin ” of 545 % . However , that leeway is calculated based on “ theoretic income . ”
It discuss these numbers in more detail at the end ofa tenacious GitHub postoutlining its approach to achieving “ higher throughput and lower latency . ” The company wrote that when it search at usance of its V3 and R1 theoretical account during a 24 - hour period , ifthat use had all been billed using R1 pricing , DeepSeek would already have $ 562,027 in daily revenue .
Meanwhile , the price of engage the necessary GPUs ( graphics processing unit ) would have been just $ 87,072 .
The caller admitted that its actual revenue is “ substantially gloomy ” for a variety of reasonableness , like nighttime discount , low pricing for V3 , and the fact that “ only a subset of service are monetize , ” with WWW and app accession remaining barren .
Of of course , if the app and site were n’t barren , and if other bank discount were n’t useable , employment would presumably be much low . So these computation seem to be highly speculative — more a gesture toward potential future profit security deposit than a existent snapshot of DeepSeek ’s bottom argument the right way now .
But the company is sharing these numbers amid broader public debate about AI ’s cost and potential profitableness . DeepSeek leapt into the spotlightin January , with a new model that purportedly fit OpenAI ’s o1 on certain benchmarks , despite being developed at a much blue cost , and in the face of U.S. deal confinement that keep Chinese companies from accessing the most powerful chips . Tech stock tumbled andanalysts nurture questions about AI spending .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
DeepSeek ’s technical school did n’t just rattle Wall Street . Its appbriefly displaced OpenAI ’s ChatGPTat the top of Apple ’s App Store — though it ’s subsequently fallen off the general ranking and is currently ranked No . 6 in productivity , behind ChatGPT , Grok , and Google Gemini .