DeepSeek’s 500% Profit Margin—How Are They Doing It?


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.

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