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DeepSeek told developers on Thursday that prices for its API services are about to go up, and to plan accordingly. In a notice posted to its developer platform, reported by Bloomberg, the Hangzhou-based company said it plans to broadly raise API prices in the near term and that the increase is expected to be ‘significant’. It did not put a number on the change or name an effective date. The reason this matters more than the usual vendor pricing tweak is what DeepSeek has been to the market up to now. Its V4-Flash currently lists at $0.14 per million input tokens and $0.28 per million output tokens, dramatically below the going rate at the big US labs, and it is that cheap price that forced Chinese rivals like ByteDance and Tencent to cut their own rates in kind after DeepSeek’s permanent V4 discount in May. If the vendor that set the floor is now walking that floor higher, the pricing arithmetic for anyone building on Chinese AI infrastructure moves with it. The interesting thing to watch is whether Moonshot, ByteDance, Tencent, and the other Chinese labs follow DeepSeek up, or hold their discounted rates and try to peel off customers who no longer see a bargain. The price war does not have to end just because the company that started it decided to stop fighting.

Originally posted by u/Justgototheeffinmoon on r/ArtificialInteligence

DeepSeek Warns Developers of 'Significant' API Price Hike