DeepSeek Makes Huge Profits While Offering Free Services

DeepSeek, has reported an amazing 545% daily profit margin from its AI services, even though many of its offerings are free or discounted.

According to recent information shared by the company, DeepSeek could theoretically earn about $562,027 per day based on its pricing for the DeepSeek-R1 model.

However, actual earnings are lower because of free web and app access, nighttime discounts, and lower prices for other models.

"Our pricing strategy focuses on accessibility and long-term adoption rather than making maximum money right away," DeepSeek explained.

The company runs its AI systems on NVIDIA H800 GPUs, adapting usage based on demand—using all resources during busy times and fewer at night. Daily costs for running these systems total about $87,072.

DeepSeek recently launched its R1 model, which they claim was developed on a relatively small $6 million budget. This announcement caused NVIDIA's stock to drop 17%, losing nearly $600 billion in value as investors worried about the model's efficiency.

Despite this market reaction, NVIDIA's CEO Jensen Huang praised DeepSeek-R1 as "an excellent innovation" and noted that such reasoning models can use up to 100 times more computing power.

DeepSeek is reportedly planning to release its next model, DeepSeek R2, earlier than the initially planned May timeframe. The upcoming model is expected to improve coding capabilities and support reasoning in more languages beyond english.