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xyzzy_plugh 2 hours ago

Your math is a bit funny if you're assuming the 1/0.5/98.5 ratios: you doubled input and output tokens but not cached. If you double cached tokens to match your original ratio it works out to around $1.11, and if you 10x the cached token cost it's around $6.08.

Based on your $0.83 estimate, the margin isn't great. This is within shooting distance of "at cost" which is probably pretty close to what DeepSeek is operating with, ignoring the value of the data they're collecting of course.

> And I believe that this framework still has some room for optimization for generation with high batch sizes.

If that optimization can bring this scenario closer to $0.50 then it gets pretty compelling, otherwise I'm not confident.

gpugreg 13 minutes ago | parent [-]

Oh, I messed up. Half-way through, I thought it would be a good idea to double the numbers so I don't have to deal with half millions, but forgot to also double the 98.5. Unfortunately, I can not edit it anymore.

I think the margins of DeepSeek may be a bit better than with this vibe-coded framework here, since they had the liberty of optimizing their models for their own hardware.

For DeepSeek V3, they claimed a cost profit margin of 545%: https://github.com/deepseek-ai/open-infra-index/blob/main/20...

At the time, open frameworks were not anywhere close to achieving that number. Not sure whether they caught up. The software wizards at DeepSeek are quite skilled.