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DeepSeek announced to raise its API price tremendously

news.ycombinator.com

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Re: DeepSeek announced to raise its API price tremendously

#11

Post by alexwwang »

samuelknight wrote: post #10

They haven't revealed what they are changing in the price, but it's probably cache hit prices. They subsidized theirs to 10x less than normal to drive adoption. That's almost certainly below the cost of electricity for them. Chinese model providers are in a bind because charging a reasonable margin will put them in competition with all the neoclouds that host their model weights without the development cost. Their ec…

Interesting insights. I will consider these factors. AFAIK, the electricity price is lower in China than in US.

Re: DeepSeek announced to raise its API price tremendously

#14

Post by stockanalyst987 »

thiago_fm wrote: post #2

It's exactly this. Not only this, we might be running very soon into cheap compute soon given the current CAPEX of all hyperscalers. DeepSeek is model that you can run anywhere, meaning that any datacenter/company could run it at a price that would give them a margin taking in account running costs of the datacenter + depreciation. I'm very sure we're overbuilding capacity, and we'll find out around 2027. Those open…

Interesting perspective. Things are definitely going to change and open weight will have a huge impact in the US as token costs are way to high now. Definite impacts to Anthropic/OpenAI but let's not forget Meta and Grok are out there too and same with Gemini.

Infrastructure costs - great points. Are we really going to have datacenters in space? If so, what will be overall cost structure with launch being the new cost factor but basically eliminating power and cooling. If it does work and takes off, what about all those expensive data centers on earth that were built and are being built. I do not see much discussion on this but probably because it's not a definite data centers in space will happen and by when. Musk has done unbelievable things but usually not on his original timelines but years further out.

Re: DeepSeek announced to raise its API price tremendously

#16

Post by alexwwang »

willsmith72 wrote: post #15

brilliant marketing? how exactly? more like how to undo any goodwill you've built with your customers. the only competitive edge for someone like me who wants an api to call is price

I might be the similar cat of user with you. But I have to say by now it push me to burn more token with it. No one could predict what will happen tomorrow and how high the price would bump to.
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