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The Chinese companies will need to pay their bills eventually too.
by dmix 2mo ago
The Chinese companies will need to pay their bills eventually too.
- XorNot 2mo agoTheir 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.
- gpt5 2mo agoData 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.
- KronisLV 2mo ago> 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.
- nicce 2mo ago> The Chinese companies will need to pay their bills eventually too. What bills? Deepseek has been profitable for long time.
- dmix 2mo agoDo 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.
- nicce 2mo agoLook 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.