Server racks in a data centre (photo: Brett Sayles / Pexels)

DeepSeek Hands Out the Engine Behind Its Cheap Tokens

DeepSeek open-sources DeepInfer, the inference stack it says runs its production services, under Apache-2.0.

THE HOOK

DeepSeek has stopped just giving away models and started giving away the machine that serves them.

THE GIST

DeepSeek released DeepInfer on GitHub under Apache-2.0, describing it as the framework behind its large-scale production services. It runs DeepSeek-V4.1-Flash for offline inference on Nvidia SM100 GPUs and Huawei Ascend 950 chips. It's free, but the KV cache system, prefill/decode split and load balancing aren't included.

THE TAKE

This is the most useful thing DeepSeek has shipped in months, and it isn't a model. Inference cost is where the real margins live, and now everyone can read the recipe. The catch is the hardware list: Blackwell-class Nvidia or Huawei's newest NPUs, nothing in between. Open source, closed garage.

OPINION

The Interconnects roundup covered by AI Weekly cites estimates that DeepSeek makes up to 90% gross margin selling tokens on this stack, which explains why its prices keep embarrassing rivals. Landing the same week Washington barred DeepSeek from federal procurement, it's also a neat reminder that you can ban a vendor but not an Apache licence.

  • Story type: Important story
  • Impact: Medium
  • Confidence: High (official announcement)
  • Audience: Developers
  • What changed: DeepSeek open-sourced DeepInfer, its production inference framework, under Apache-2.0.
  • What to watch: Whether DeepSeek releases the missing KV cache and disaggregation pieces, and how fast vLLM and SGLang absorb its kernels.
  • Reading time: 1 minute