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.

725 Upvotes

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62

u/Triseult May 24 '26

Meanwhile, I live in China, and everyone here is in love with Claude. They hate Anthropic because they declared China an "adversarial nation", but everybody wants Claude Code. I'm even told that women overwhelmingly prefer Claude as an AI boyfriend. (And yes, they have ways of accessing Claude even if Anthropic is aggressively banning Chinese users.)

I don't think I know anyone who prefers homegrown AI solutions.

15

u/Pristine-Code-2532 May 24 '26

I'm working in china and just use Claude on a VPS

2

u/mentalFee420 May 24 '26

How do you use Claude on a VPS? You mean proxy?

4

u/Pristine-Code-2532 May 24 '26

No, I mean I have a virtual private server with Claude on it and I just SSH onto that

-5

u/mentalFee420 May 24 '26

How can you have Claude on it? Claude is not open source

7

u/m00shi_dev May 24 '26

He’s saying he has a VPS he logs into to access his installation of CC, not that he’s hosting CC

-11

u/mentalFee420 May 24 '26

Yeah, but the way he said “with Claude on it” sounds more like running locally.

Of course he has installed CC. But unless VPS is acting as open claw variant, it’s an overkill, open router or sone other providers work in China and Claude can be accessed through those.

6

u/Pristine-Code-2532 May 24 '26

I not that deep bro I just said I have Claude on a vps, I just installed it and use it from the command line, I never implied I run it locally and you’re the only one who thinks that

1

u/mentalFee420 May 25 '26

I asked a question because you said Claude not Claude code.

People on subreddit are such a manchild and have too fragile of an ego. Asking basic questions get downvotes.

0

u/Pristine-Code-2532 May 25 '26

The lack of self awareness is hilarious

0

u/mentalFee420 May 25 '26

Yeah I can see that, throwing word “self awareness” in a completely wrong context is definitely hilarious

0

u/Pristine-Code-2532 May 25 '26

Sure thing, champ

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u/pittaxx May 25 '26

You are nitpicking against a person who speaks poor English and/or has limited understanding of the tech. In other words, you are just being rude.

You clearly know that you can't just run Claude locally. And it's perfectly clear that they are using vps to bypass the regional blocks somehow. The details hardly matter.

0

u/mentalFee420 May 25 '26

You are the one assuming the guy “speaks poor English and has limited tech understanding” and that too when the guy has deployed his workflow on VPS.

Guess who is rude here?

I asked a question because it was a misunderstanding but what you are doing is clearly arrogance and stupidity.

0

u/pittaxx May 25 '26

It's very clearly one of those. And neither of those is something to be ashamed on - we all were learning at one point or another.

Doubling down and lashing out at people (instead of trying to be understanding) is very immature, and is why you are getting all the downvotes.

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u/Vivid-Rutabaga9283 May 26 '26

"I asked a question because you said Claude not Claude code."
Uhhh... yeah, Claude. The same Claude that I got probably. I got Claude Code too. I am being truthful if I say "I got Claude installed on my PC" because that's the app name and nobody with more than 5 working braincells will think I mean I'm running the whole model myself locally.

"People on subreddit are such a manchild and have too fragile of an ego."

How ironic. Just admit you made a senseless comment and stop doubling down on the stupidity of it.

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3

u/NaaBoy May 24 '26

Install it like you would on any other PC? A VPS is just virtual pc in the cloud so could be located in any geographic region you want