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Chamarti Sreekar

Stealth • 1d

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 • 1d

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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