Part 5/10:
When examining the cost discrepancies between DeepSeek and OpenAI, it is crucial to acknowledge the extent of operating margins in the AI industry. OpenAI generates significant profits from inference, operating with gross margins reportedly exceeding 75%. This suggests that substantial costs are built into their pricing, possibly to subsidize ongoing R&D efforts, indicating that DeepSeek's pricing advantage partly results from their operational structure—albeit the underlying architectural efficiencies should not be overlooked.