Deepseek's Breakthrough Reveals Algorithm Cost-Profit Ratios, Raising Questions About Competition in Ai Sector
Chinese AI startup DeepSeek has disclosed cost and revenue data related to its hit V3 and R1 models, claiming a theoretical cost-profit ratio of up to 545% per day. This marks the first time the Hangzhou-based company has revealed any information about its profit margins from less computationally intensive "inference" tasks. The revelation could further rattle AI stocks outside China that plunged in January after web and app chatbots powered by its R1 and V3 models surged in popularity worldwide.
- DeepSeek's cost-profit ratio is not only impressive but also indicative of the company's ability to optimize resource utilization, a crucial factor for long-term sustainability in the highly competitive AI industry.
- How will this breakthrough impact the global landscape of AI startups, particularly those operating on a shoestring budget like DeepSeek, as they strive to scale up their operations and challenge the dominance of established players?