[phi-go]

Why do you think that?

[johndough]

DeepSeek had a theoretical profit margin of 545 % [1] with much inferior GPUs at 1/60th the API price.

Anthropic's Opus 4.6 is a bit bigger, but they'd have to be insanely incompetent to not make a profit on inference.

[1] https://github.com/deepseek-ai/open-infra-index/blob/main/20...

[computerex]

American labs trained in a different way than the Chinese labs. They might be making profit on inference but they are burning money otherwise.

[DANmode]

> they'd have to be insanely incompetent to not make a profit on inference.

Are you aware of how many years Amazon didn’t turn a profit?

Not agreeing with the tactic - just…are you aware of it?

[elzbardico]

Deepseek lies about costs systematically. This is just another fantasy.

[noosphr]

Because if you don't then current valuations are a bublle propped inflated by burning a mountain of cash.

[falcor84]

That's not how valuations work. A company's valuation is typically based on an NPV (net present value) calculation, which is a power series of its time-discounted future cash flows. Depending on the company's strategy, it's often rational for it to not be profitable for quite a long while, as long as it can give investors the expectation of significant profitability down the line.

Having said that, I do think that there is an investment bubble in AI, but am just arguing that you're not looking at the right signal.

[cies]

And that's OpenAI's biz model? :)