Jun Song(@jun_song):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.

2026.08.01 16:30

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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