Artificial Intelligence DeepSeek Forced To Raise Prices As Its Recent Price Cuts To Snub OpenAI Unleashed A Demand Tsnunami That Its 20,000-GPU Stash Can’t Handle

[Ghan]

DeepSeek unleashed a tsunami of demand with its recent price cuts for the V4 Flash model, forcing an abrupt about-face​

Too much of a good thing can become poison, as DeepSeek appears to be finding out now after it nipped OpenAI's nascent price war in the bud by aggressively cutting the price of its V4 Flash model, unleashing a demand tsunami that its infrastructure simply can't keep up with. As we detailed recently, OpenAI launched a literal price war a few days back by discounting its GPT-5.6 Luna by as much as 80 percent, with input tokens now priced at just $0.2 per 1 million from their earlier perch at $1, and output tokens priced at just $1.20 per 1 million vs. the earlier price of $6.

Even though OpenAI claimed at the time that it was able to implement this steep discount after extracting additional architectural efficiencies from its models, most interpreted the move as its opening gambit in a price war aimed at China's AI labs.

DeepSeek Forced To Raise Prices As Its Recent Price Cuts To Snub OpenAI Unleashed A Demand Tsnunami That Its 20,000-GPU Stash Can't Handle

DeepSeek unleashed a tsunami of demand with its recent price cuts for the V4 Flash model, forcing an abrupt about-face.

wccftech.com