Hacker News Reader

The Chinese companies will need to pay their bills eventually too.

> The Chinese companies will need to pay their bills eventually too.

What bills? Deepseek has been profitable for long time.

Do you have a source I can read? All I see on Google are random blog posts mostly debunking that idea. Profit margins on API tokens isn't the same as running a profitable long term business, or bringing returns on the large amount of funding they got.

Look information about the parent company High-Flyer which has has been breaking profit records with AI based stock market prediction. They already had the computing before LLM era.

Their purchasing costs are much lower proportionally.

China has cheaper electricity and a more capable grid for the industrial type usage levels they need to drive.

Data centers don't really cost less in China. Perhaps even more due to trade restrictions and the difficulty of smuggling the chips in.

Electricity is a small part of the bill.

> difficulty of smuggling the chips in

I wonder how long it'll be until they won't need to do that due to domestic options.

Reply on news.ycombinator.com