DeepSeek Drops AI API Prices by 75%—OpenAI & Google Face New Competition

DeepSeek, the rising Chinese AI startup, is shaking up the industry once again. Following the success of its R1 model, the company announced a major price drop on its API services, offering off-peak discounts of up to 75%. This bold move is expected to put pressure on competitors like OpenAI and Google to rethink their pricing strategies.

Huge Discounts During Off-Peak Hours

In an announcement on X, DeepSeek revealed its latest pricing update:

“Off-Peak Discounts Alert!
Starting today, enjoy reduced prices on the DeepSeek API Platform from 16:30 to 00:30 UTC daily:

🔹 DeepSeek-V3: 50% off
🔹 DeepSeek-R1: 75% off

Optimize your budget and maximize value during these discounted hours!”

With these price cuts, developers using DeepSeek’s V3 model will pay half the usual rate, while R1 users will see an even steeper 75% discount. Despite being labeled as “off-peak,” this discount period aligns conveniently with working hours in the U.S. and Europe—a clear sign that DeepSeek is targeting a global audience.

A Game-Changer for Developers

The timing of this price reduction is no coincidence. Just last month, DeepSeek’s aggressive pricing strategy caused ripples in the tech industry, triggering a sell-off in AI-related stocks over concerns that its low-cost models could undercut established players. Now, with even deeper discounts, the company is making it even harder for competitors to justify their higher prices.

Open-Source Strategy Reshaping AI Competition

DeepSeek has been pushing the boundaries of AI affordability since May of last year, when its V2 model sparked a price war among Chinese AI companies. Unlike some competitors, the startup has embraced an open-source approach, making its technology more accessible while keeping costs low.

This has forced industry giants to respond—OpenAI recently lowered its API prices, and Google followed suit by offering cheaper access to its Gemini models.

What’s Next for DeepSeek?

Sources close to the company suggest that DeepSeek is already working on a next-generation AI model to succeed in R1. If the past is any indication, this could mean even more disruption for the AI landscape, as rivals scramble to keep up.

For developers looking to cut costs without sacrificing quality, DeepSeek’s latest move is a game-changer. And for the AI industry? The price war is just getting started.

Source

Versha Gupta

Versha Gupta is a tech freak and co-founder of techzimo.com, she spends more of her time searching latest innovations in the tech world. But being a tech freak, she has the same interest in the entertainment world, she watches all the latest web series on OTT platforms and reviews them on Techzimo. Know more about her on Facebbok Instagram linkedin