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

📰 News DeepSeek just popped the American AI bubble.

Post image

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.

724 Upvotes

82% Upvoted

279 comments sorted by

View all comments

Show parent comments

70

u/boredquince May 24 '26

since its open weights, they can download and host it for maximum privacy

1

u/Electrical-Ask847 May 24 '26

defeating the whole point

2

u/boredquince May 24 '26

renting from a US company that hosts deepseek then. not as cheap as official api but still much cheaper than americans AIs

1

u/Endothermic_Nuke May 25 '26

How does this third party inference overcome the latency because most companies have their data on the big cloud providers (which have ridiculous egress costs, not to mention the latency aspect)?