DeepSeek V4 price war forces Xiaomi to slash API costs by 99%

The introduction of DeepSeek's remarkably affordable V4 models has ignited a price competition within China's AI industry, compelling competitors to revise their pricing tactics. In response, Xiaomi has reduced API fees for its MiMo-V2.5 model by as much as 99%, resulting in a dramatic rise in its usage: the model handled 1.7 trillion tokens in the week leading up to Monday, marking a 999% increase and securing the sixth position on OpenRouter. Meanwhile, various Chinese AI companies are exploring alternative monetization strategies in this fiercely competitive local market.