Chinese AI startup DeepSeek on Saturday disclosed some cost and revenue data related to its hit V3 and R1 models, claiming a theoretical cost-profit ratio of up to 545% per day, though it cautioned that actual revenue would be significantly lower.

DeepSeek has revealed they makes $200M/yr at 85%+ profit margins. This means their profits margins are larger than the 72-77% profit margins of Nvidia.

DeepSeek is looking to press home its advantage. The Hangzhou-based firm is accelerating the launch of the successor to January's R1 model.

Tencent Holdings Ltd. became the latest tech company to unveil or enhance an AI model intended to eclipse DeepSeek, joining a spate of rollouts since the startup’s emergence energized the US-China technology race.

BGMI maker Tencent's AI model will compete with China's DeepSeek. DeepSeek created a stir in the global industry by entering the market. The latest AI model, Hunyuan Turbo S, is designed to give instant answers.