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DeepSeek Founder: Open Source Doesn't Hurt 6x Profit, But Limits 100x Ambition

DeepSeek's founder Liang Wenfeng has finally pulled back the curtain on the company's open-source strategy, and his reasoning is refreshingly straightforward: open source is fine as long as you're not chasing insane profits.

In a leaked conversation from an investor exchange session, Liang laid out the financial logic behind DeepSeek's decision to open-source even its most powerful models. "We will definitely open-source, and even the strongest models will be open-sourced," he said, adding that he sees no inevitable benefits in keeping them closed.

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The 6x vs 100x Profit Divide

Liang's argument boils down to a simple calculation. If your goal is to make about six times your investment—which he says corresponds to a ten-month return on investment—then open source has zero impact on your business model. You can still make that money, no problem.

But if you're dreaming of 100x returns, that's a different story. Once you open-source a model, third parties can deploy it independently at one-twentieth of the cost, achieving the same results. That kills your pricing power. "Open-sourcing does not affect 6x profit, but it may restrict 100x profit," Liang explained.

He defined the six-times-profit target as DeepSeek's "disciplined" strategy. It's not about maximizing short-term gains; it's about building a company that can last longer and seize more opportunities as technology evolves. The ultimate prize? A better shot at achieving Artificial General Intelligence (AGI).

The Sweet Spot: Medium Scale

Liang also touched on why DeepSeek's medium-scale approach is a "sweet spot" that competitors can't easily copy. By not going for the biggest models or the highest profits, they avoid the constraints that come with scale—like the need to protect proprietary technology. This flexibility, he argues, gives them more room to innovate and adapt.

The leaked conversation offers a rare glimpse into the thinking of a founder who's willing to trade short-term windfalls for long-term survival. In an industry obsessed with billion-dollar valuations and exponential growth, Liang's message is almost contrarian: sometimes, the smartest move is to aim for just enough.

Key Points

  • Open source doesn't hurt 6x profit: Liang says a ten-month ROI is achievable even with open models.
  • 100x profit requires closed source: Third parties can replicate open models at 1/20th the cost, eroding pricing power.
  • Disciplined strategy: DeepSeek targets modest returns to ensure longevity and increase AGI chances.
  • Medium scale is the sweet spot: It offers flexibility that larger, profit-driven competitors lack.