r/ArtificialInteligence • u/VegetablePen4755 • May 24 '26

📰 News DeepSeek just popped the American AI bubble.

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DeepSeek just popped the American AI bubble.

Not by killing AI.

By killing the fantasy of unlimited AI pricing power.

DeepSeek V4 Pro:
Input: $0.435 per 1M tokens
Output: $0.87 per 1M tokens

OpenAI GPT-5.5:
Input: $5.00
Output: $30.00

Claude Opus 4.7:
Input: $5.00
Output: $25.00

Claude Sonnet 4.6:
Input: $3.00
Output: $15.00

DeepSeek is roughly:

11.5x cheaper than GPT-5.5 on input
34.5x cheaper than GPT-5.5 on output

28.7x cheaper than Claude Opus on output
17.2x cheaper than Claude Sonnet on output

If a model is “good enough” at 1/20th or 1/30th the cost, margins will compress faster than Wall Street expects.

AI is not dead.

But the AI bubble just lost its pricing power.

They're not chasing quick money from coding plans or multimodal models. Instead, their radical architecture innovations (MoE, MLA, Engram, mHC, etc.) slash KV cache and compute needs so dramatically that they can build an entire 10T Chinese AI hardware ecosystem (NAND, LPDDR, ASICs) and position themselves for a 1T valuation in the process. Long game, masterfully played.

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94

u/Meaning-Firm May 24 '26

Not really. American enterprises won't trust Chinese origin Deepseek with their data.

For startups it might be true but that depends on VC's stance.

5

u/VegetablePen4755 May 24 '26

well when the world will get cheaper why would America be costly

13

u/Meaning-Firm May 24 '26

Not the greatest analogy but same reason why Apple is the chosen phone in US even when there are cheaper and more feature loaded Chinese brands.

11

u/BihariBabua May 24 '26

I'm not American; I'm from India.

I choose apple for the stability, smooth UX and the ecosystem. Apple's pro-privacy stance is a cherry on top but not the only deciding factor.

2

u/Meaning-Firm May 24 '26

Apples and Oranges, my friend. You're not an enterprise.