Comment by BoredomIsFun

> Local model enthusiasts often assume that running locally is more energy efficient than running in a data center,

It is a well known 101 truism in /r/Localllama that local is rarely cheaper, unless run batched - then it is massively, 10x cheaper indeed.

> I think they mean that the DeepSeek API charges are less than it would cost for the electricity to run a local model.

Because it is hosted in China, where energy is cheap. In ex-USSR where I live it is inexpensive too, and keeping in mind that whole winter I had to use small space heater, due to inadequacy of my central heating, using local came out as 100% free.