DeepSeek’s 500% Profit Margin—How Are They Doing It?
Updated: March 9, 2025
Summary
The video discusses DSE's open-sourcing of five repos related to V3 and R1 models, showcasing impressive profit margins and challenging the assumption of burning money. It provides a detailed overview of DeepSeek R1 and V3, revealing 500% profit margins during off-peak hours and efficient cost management strategies compared to high-priced API providers. The analysis delves into the efficient use of resources, inference cost calculations, processing rates, and profit implications from web app requests, emphasizing cost efficiency, innovation, and profitability through in-depth revenue and profit margin comparisons over the year.
Open Sourcing Repos
Last week, DSE announced the open-sourcing of five different repos related to V3 and R1 models.
Revenue Numbers
Exploration of revenue numbers showing impressive profit margins, debunking the assumption of burning money.
DeepSeek R1 and V3 Overview
Detailed overview of DeepSeek R1 and V3, highlighting profit margins of 500% during off-peak hours.
API Providers Comparison
Comparison with API providers charging high prices for similar models, revealing efficient cost management strategies.
Capacity Management
Efficient use of resources with high load during the day, utilizing extra capacity for research during off-peak hours.
Inference Cost
Insight into inference cost calculations, processing rates, and profit implications from web app requests.
Revenue Comparison
Comparison of revenue and profit margins, highlighting lower charges, nighttime discounts, and cost efficiency.
Profit Analysis
In-depth analysis of profit margins and revenue per year, showcasing innovation and profitability.
FAQ
Q: What was announced by DSE last week related to V3 and R1 models?
A: DSE announced the open-sourcing of five different repos related to V3 and R1 models.
Q: How are profit margins portrayed in the exploration of revenue numbers mentioned in the file?
A: The revenue numbers show impressive profit margins, debunking the assumption of burning money.
Q: What profit margins were highlighted during off-peak hours for DeepSeek R1 and V3?
A: Profit margins of 500% were highlighted during off-peak hours for DeepSeek R1 and V3.
Q: How did the comparison with API providers show the efficiency of cost management strategies?
A: The comparison with API providers revealed efficient cost management strategies by showcasing lower charges, nighttime discounts, and cost efficiency.
Q: How are resources efficiently utilized during off-peak hours in the file?
A: Extra capacity is utilized for research during off-peak hours, showcasing efficient use of resources with high load during the day.
Q: What insights are provided into inference cost calculations, processing rates, and profit implications from web app requests in the file?
A: The file provides insights into inference cost calculations, processing rates, and profit implications from web app requests.
Q: What is the focus of the in-depth analysis mentioned in the file regarding profit margins and revenue per year?
A: The in-depth analysis focuses on profit margins and revenue per year, showcasing innovation and profitability.
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