Ultracheap Chinese artificial intelligence is proving to be a major threat to the shaky economics of Silicon Valley. But the same price war is becoming just as risky for China’s own AI sector. After warning customers to expect a significant increase in pricing for its services, DeepSeek recently unveiled new rates for its latest V4-Pro and V4-Flash models.
The new structure, broken down by peak and off-peak access, marks a sharp jump, with some charges multiple times higher than before. Does this hike mean the brutal race to the bottom is finally easing? Chinese firms have spent more than a year and a half proving they can make bleeding-edge models.
The harder part has been figuring out how to get businesses and customers to pay for them.
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