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Chamarti Sreekar

Passionate about Pos... • 2m

How is DeepSeek able to have a 545% profit margin while OpenAI is losing money? Can someone explain??

Nimesh Pinnamaneni
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Helixworks Technologies • 2m

A 545% profit margin sounds like a misunderstanding—profit margin is calculated as profit/revenue, so it can’t exceed 100%. What’s likely happening here is cost asymmetry: DeepSeek may have minimal infrastructure costs because it’s leveraging pretrained models and/or government-subsidised compute in China, while OpenAI is burning billions training frontier models.

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𝗛𝗼𝘄 𝗜𝗻𝗱𝗶𝗮𝗻 𝗘𝗻𝗴𝗶𝗻𝗲𝗲𝗿𝘀 𝗕𝘂𝗶𝗹𝘁 𝘁𝗵𝗲 𝗔𝗜 𝗪𝗼𝗿𝗹𝗱—𝗕𝘂𝘁 𝗦𝗶𝗹𝗶𝗰𝗼𝗻 𝗩𝗮𝗹𝗹𝗲𝘆 𝗧𝗼𝗼𝗸 𝘁𝗵𝗲 𝗖𝗿𝗲𝗱𝗶𝘁 In today’s AI boom, 𝐈𝐧𝐝𝐢𝐚𝐧 𝐦𝐢𝐧𝐝𝐬 𝐚𝐫𝐞 𝐞𝐯𝐞𝐫𝐲𝐰𝐡𝐞𝐫𝐞. You just don’t hear their names enough