DeepSeek slashes AI model prices, challenges Nvidia amid China export curbs
DeepSeek, a Hangzhou-based AI company, has announced significant price reductions for its latest AI models, intensifying competition with the United States in artificial intelligence. The newly released DeepSeek V4 Pro offers developers a 75% discount, while fees for input cache hits across its platforms have been cut to 10% of the original price, benefiting users with frequent similar requests. This move comes amid US export restrictions on advanced chips to China, particularly affecting Nvidia's sales in the region. DeepSeek's aggressive pricing strategy signals a shift away from reliance on Nvidia's hardware, as Chinese firms seek alternative solutions to maintain competitiveness in the AI sector.
Key facts
- DeepSeek announced ultra-low charges for models unveiled last week.
- Developers receive 75% discounts on DeepSeek V4 Pro.
- Input cache hit fees reduced to 10% of original price.
- Price cuts aim to stoke competition with US in AI.
- US export curbs on advanced chips to China impact Nvidia.
- DeepSeek is based in Hangzhou, China.
- The V4 Pro model is newly released.
- Cost savings target users with frequent similar requests.
Entities
Institutions
- DeepSeek
- Nvidia
- South China Morning Post
Locations
- Hangzhou
- China
- United States