I am wondering if this is why they can offer their pro model at ~1/4th of the price compared to the other providers offering the same model, and if other providers will be able to do the same in a short timeframe.
I have been heavily using DeepSeek V4 Pro at Max for a month now and I would say it is 100x cheaper. If I pay for Claude I will hit that limit so fast I am always waiting 5 hours. Using the frontier models at Kilo I go through dollars while doing the same thing via DeepSeek it is pennies.
It'd presumably help a lot, but also when you use their endpoint they get more training data.
Inference I estimate runs 90% plus gross margins. Just work out the math on these servers. I am pretty sure any player can price down. It wouldn't look good on an IPO prospectus.