Archive — CN — technode
Luchen Technology becomes first to drop DeepSeek API over cost concerns
Luchen Technology is the first company to discontinue the use of DeepSeek's API due to high operational costs, despite DeepSeek's reported profit margin of 545%. The decision affects users who are advised to utilize their remaining balance before the cessation of service.
Key points
- Luchen Technology discontinues DeepSeek API use due to cost concerns.
- DeepSeek reported a theoretical profit margin of 545% for its services.
- Luchen announced the discontinuation on March 1, effective within a week.
- Founder's statements highlight financial strain on smaller cloud providers.
- Sina Tech notes challenges for third-party MaaS providers in meeting DeepSeek costs.
Why it matters
- This event highlights the growing focus on cost management in AI infrastructure.
- As of 2025, many companies are re-evaluating contracts and service integrations to keep costs manageable.
- The incident reflects broader trends in AI where operational costs can greatly impact smaller firms' competitiveness.
Luchen Technology's decision to discontinue DeepSeek API usage underscores the financial challenges smaller firms face in the rapidly evolving AI landscape, raising questions about the sustainability of costs in cloud service solutions.