By Eduardo Baptista, Julie Zhu and Fanny Potkin BEIJING/HONG KONG/SINGAPORE (Reuters) - DeepSeek is looking to press home its advantage. The Chinese startup triggered a $1 trillion-plus sell-off in global equities markets last month with a cut-price AI reasoning model that outperformed many Western competitors.

China’s DeepSeek shocked the world by delivering unexpected innovation at an unbelievable price in January. But this disruptive trend isn’t confined to Big Tech: It has been quietly happening in the pharmaceutical sector.

Chinese AI startup DeepSeek is fast-tracking the launch of its R2 model after the success of its earlier release, R1, which outperformed many Western

DeepSeek, a Chinese AI startup, shared key financial metrics on Saturday, providing one of the few insights into the economics of the AI industry.

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.

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.