DeepSeek’s move aims to attract more enterprise clients, developers and agent-based users, according to an academic
DeepSeek has slashed prices on its artificial intelligence models, including its latest V4 which now costs 97 per cent less than OpenAI products, potentially triggering a price war in the highly competitive AI market.
DeepSeek said on Sunday that it would reduce prices for “input cache hits” – where previously processed context was reused – for application programming interface (API) users to one-tenth of the original level, bringing the minimum input cost down to about US$0.14 per million tokens.
DeepSeek said the cuts were effective immediately and would be permanent.
As a result, DeepSeek-V4-Pro is currently as cheap as US$0.0036 per million input tokens, a fraction of the cost of its American rivals. In comparison, OpenAI’s GPT-5.5 charges US$0.5 per million cached input tokens. Given that a conversation consists of input and output, and that input is typically three times longer than output, the cost per conversation on GPT-5.5 is 32 times that of DeepSeek-V4.
Source: News - South China Morning Post
