China's DeepSeek claims theoretical cost-profit ratio of 545% per day
Published On Mar 1, 2025, 7:40 AM
DeepSeek, a Chinese AI startup, has announced an impressive theoretical cost-profit ratio of 545% per day for its AI models, V3 and R1. The company indicated that it spent around $6 million on chips to train these models and uses Nvidia's H800 chips, which are less advanced than those used by competitors like OpenAI. However, they also warned that actual revenues would be significantly lower than theoretical estimates. This announcement could impact the stocks of AI companies outside of China, which have seen declines following the popularity surge of DeepSeek's models.
Stock Forecasts
NVDA
Negative
The market may react negatively to this news as it raises concerns over the profitability and revenue generation capabilities of AI companies, particularly those in direct competition with DeepSeek.
BABA
Positive
This event could position DeepSeek favorably in the market, potentially leading to increased investments and interest in their technology from investors.
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