Chinese AI startup Deepseek made a 75% discount on its flagship model permanent, intensifying an AI price war.
Chinese labs are increasingly looking to compete with their global peers for customers, and cost is a big part of the equation: DeepSeekâs offering is more than 10 times cheaper than OpenAIâs.
As American companies make an aggressive push into enterprise, selling their products to businesses, several firms have started saying AI spend is squeezing margins.
As with other Chinese industries, major AI players are betting that âvictory does not require producing the most advanced commodity, but producing a good-enough commodity at structurally lower cost until the opponentâs premium pricing model loses its market sustainability,â two Taiwan-based experts wrote.