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Nimesh Pinnamaneni

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A 545% profit margin sounds like a misunderstandingโ€”profit margin is calculated as profit/revenue, so it canโ€™t exceed 100%. Whatโ€™s likely happening here is cost asymmetry: DeepSeek may have minimal infrastructure costs because itโ€™s leveraging pretrained models and/or government-subsidised compute in China, while OpenAI is burning billions training frontier models.

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

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