DeepSeek V4 forces rivals to slash prices, rattling China’s cloud providers
Chinese artificial intelligence developers are rapidly overhauling their pricing strategies as DeepSeek’s ultra-cheap V4 models trigger a new round of competition, forcing rivals to rethink how they monetise AI in a cutthroat domestic market. Smartphone and electric-vehicle maker Xiaomi has emerged as one of the latest companies to respond, slashing application programming interface (API) costs for its MiMo-V2.5 model by as much as 99 per cent from previous levels. Usage of X
Chinese artificial intelligence companies are significantly adjusting their pricing structures due to aggressive new offerings. DeepSeek's V4 models have initiated a fierce price war within the domestic market, compelling competitors to re-evaluate their monetization strategies for AI services. Xiaomi, a major technology firm, has notably reduced the API costs for its MiMo-V2.5 model, with some reductions reaching as high as 99 percent. This move by Xiaomi signifies a broader trend of cost reduction across the industry as companies vie for market share.
This price war is significant because it could make advanced AI more accessible and affordable for businesses and developers in China, potentially accelerating AI adoption and innovation.
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