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DeepSeek Becomes the First AI Model to Achieve Profitability, Redefining Industry Standards

Writer: huizhong Jiahuizhong Jia

March 5, 2025 – In an industry dominated by high-cost AI models and closed ecosystems, DeepSeek has emerged as the first AI large model to successfully complete a commercial cycle while maintaining its commitment to open-source and affordability.

During its groundbreaking "DeepSeek Open Source Week," the company not only unveiled its latest DeepSeek-V3/R1 inference system but also revealed its remarkable profitability figures, sending shockwaves through Silicon Valley's tech giants.

According to publicly disclosed data, DeepSeek's estimated daily revenue stands at an impressive $562,027, with operating costs of just $87,072. This translates to a staggering profit margin of 545%, proving that DeepSeek’s open-source strategy is not just sustainable but highly lucrative.

Profitability Without Compromising Accessibility

Unlike many AI companies that rely on high subscription fees and premium API pricing, DeepSeek has consistently prioritized affordability and accessibility. Despite frequent price cuts and off-peak discounts, the company continues to generate significant revenue. On February 26, DeepSeek introduced new off-peak pricing, reducing API costs by up to 75% during non-peak hours. This follows multiple rounds of price reductions throughout 2024, all while maintaining financial viability.

DeepSeek primarily generates revenue through enterprise API calls, charging companies based on usage or subscription models. Additionally, for high-security clients, it offers localized AI model deployment with integrated hardware and software solutions. Some enterprise clients reportedly pay annual fees exceeding $10 million for DeepSeek’s services.

The Open-Source Advantage

DeepSeek’s commitment to radical open-source accessibility has won it a dedicated user base and major enterprise partnerships. Unlike other AI firms that restrict model access or charge licensing fees, DeepSeek allows companies to develop their own derivative models without any obligation to open-source their modifications. This policy has led major tech players, including Alibaba, Tencent, and Baidu, to integrate DeepSeek into their ecosystems.

A New Era of AI Economics

While competitors like OpenAI have transitioned to closed models and high subscription fees—charging $200 per month for GPT-4.5 Pro access—DeepSeek has embraced an entirely different strategy. By leveraging cost-efficient infrastructure and algorithmic optimizations, it has driven down AI inference costs to as little as 1/50th of the industry standard, effectively forcing a global AI pricing restructure.

Apple CEO Tim Cook has even praised DeepSeek’s business model, stating, "DeepSeek has redefined the economics of innovation, proving that efficiency itself is the most compelling business strategy."

DeepSeek’s vision extends beyond profitability—it aims to reshape the AI industry by making advanced AI technology universally accessible. As AI continues to evolve, DeepSeek’s model of efficiency, affordability, and openness is setting a new benchmark for the future of artificial intelligence.

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