Chamath Palihapitiya
@chamath
Social Capital
8090
God is in the details.
Joined April 2007
1.1K Following 2.3M Followers
Some are saying prices are going to continue to go way down…
People keep asking why DeepSeek’s API is so cheap.
Some even make absurd claims that they’re dumping prices to corner the market.
No, the answer is simple: their model size is ridiculously small compared to its performance.
It's 10x smaller than Opus, and 5x smaller than Sonnet.
That means what used to require an 8-chip node can now run on a single chip.
And because it's so small, it runs extremely fast. You can multi-serve multiple users from a single chip while maintaining decent speeds.
By my math, they can handle 40x~ more traffic than Opus using the exact same compute.
This is where the competition is heading, and it’s why they can stay profitable even at these crazy prices.
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