DeepSeek just popped the American AI bubble.

Reddit r/ArtificialInteligence News
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Summary

DeepSeek's V4 Pro model undercuts rivals like GPT-5.5 and Claude Opus by 10-35x on pricing, signaling a deflationary pressure on the AI bubble as margins compress with 'good enough' models at significantly lower cost.

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.
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DeepSeek permanently reduced V4 Pro prices by 75%, undercutting leading AI models from OpenAI, Anthropic, and Google, escalating the AI price war.

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DeepSeek unveiled its new V4-Pro-0813 model, priced at $0.87 per million output tokens, while claiming strong benchmark performance against Anthropic's Opus 4.8 and intensifying the AI price war with OpenAI.