China’s Deepseek AI Has 85% Profit Margins

DeepSeek has revealed they makes $200M/yr at 85%+ profit margins. This means their profits margins are larger than the 72-77% profit margins of Nvidia.

Revenue (/day): $562k
Cost (/day): $87k
Revenue (/yr): ~$205M

This is all while charging $2.19/M tokens on R1, ~25x less than OpenAI o1.

If Deepseek was in the US, they would be a over a $10 billion company. The investment hedgefund that owns Deepseek is likely able to make ten times what DeepSeek AI is making by making stock trades based upon the impact of Deepseek AI announcements. They will have insider information to know what DeepSeek releases and when and will be able to predict how various technology stocks react to that information.

1 thought on “China’s Deepseek AI Has 85% Profit Margins”

  1. Do they not have insider trading laws in China? Real question, I know they view patents as instructions, but I thought their Government would have some stock market laws, we do…unless your in congress.😠

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