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NullifyNAN 4 days ago

DeepSeek has shown that it makes 500% profit and it sells tokens for far lower than any big AI company.

https://www.reuters.com/technology/chinas-deepseek-claims-th...

These companies are unprofitable because of balance sheet shenanigans. See “Hollywood Accounting”.

There is absolutely no way they are not turning massive profit. They are serving relatively similar models to open source at 5-50x the price.

GLM 2.5 is $0.60 in, $2.20 out and it’s basically equivalent to Claude Opus.

Opus is $15 in and $75 out.

No way they’re operating at a massive loss.

hansmayer 4 days ago | parent [-]

I have no idea about DeepSeek. But the US-based GenAI leaders are in fact, operating under massive loss.