DeepSeek Slashes AI Model Costs by Up to 75% for Off-Peak Usage
Chinese artificial intelligence startup DeepSeek has announced a price reduction of up to 75% for developers using its AI models during off-peak hours. According to a statement published on the company’s website on Wednesday, this move could intensify competition among AI firms, particularly in China and global markets. Reuters reported the development.
The Hangzhou-based company stated that API usage costs would be significantly lowered from 16:30 to 00:30 GMT. The R1 model will see a 75% price reduction, while the V3 model will be discounted by 50%. Although DeepSeek refers to this timeframe as "off-peak," it coincides with business hours in Europe and the United States, potentially disrupting the AI technology sector in these regions.
DeepSeek’s low-cost model had already caused a stir in global equity markets last month, as investors grew concerned that its aggressive pricing strategy could pose a serious threat to leading AI firms.
The company first triggered a price war in China’s AI sector in May with the launch of its V2 model. Following the success of the R1 model, DeepSeek is now accelerating the development of its next-generation AI models.
In response to DeepSeek’s pricing strategy, OpenAI has lowered the cost of its ChatGPT services, while Google has introduced discounted subscription plans for its Gemini AI.
