DeepSeek's New Pricing Strategy Challenges OpenAI's Dominance

DeepSeek just cranked up the pressure in the global AI race. The Chinese startup that spooked tech markets last month now offers a 75% discount on its AI models during European and U.S. working hours.

The company's website reveals dramatic price cuts for its R1 and V3 models between 1630 GMT and 0030 GMT. While DeepSeek labels this window as "off-peak" Beijing time, it's prime time for Western developers. The R1 model costs 75% less during these hours, while V3 users enjoy a 50% discount.

This move follows DeepSeek's market-shaking entrance last month, when its powerful yet affordable AI models triggered a massive tech stock sell-off. Their success prompted quick responses from industry giants – OpenAI slashed its prices, and Google's Gemini introduced budget-friendly options.

DeepSeek isn't stopping there. Sources say the company plans to fast-track the release of R2, its next-generation model. This aggressive expansion builds on their track record – last May, DeepSeek sparked China's first AI price war with the release of their V2 model.

These developments highlight a shift in the AI landscape. What started as a domestic price war in China now ripples through global markets, forcing established players to rethink their pricing strategies.

Why this matters:

• DeepSeek transforms "off-peak" hours into a strategic weapon, targeting Western markets while maintaining plausible deniability
• The AI arms race shifts from raw capability to cost-effectiveness, potentially democratizing access to advanced AI
• Western tech giants face their first serious challenge from China in the commercial AI space, marking a potential power shift in the industry