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DeepSeek planning to significantly raise prices

platform.deepseek.com

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Re: DeepSeek planning to significantly raise prices

#2
From the announcement:

We plan to raise the overall pricing for DeepSeek API services in the near future, with a significant increase expected. Please plan your usage accordingly. The specific pricing plan will be subject to official notice.

Now, the question remains, what does that "significant" mean? Would it still be cheaper than the competition, or did they realize they are too cheap for what they offer?

Given that many inference providers offer DS4 flash for more or less the same input and output token price as DeepSeek, they have good profits even with todays low prices.

Re: DeepSeek planning to significantly raise prices

#3
I guess they invested in some new infra and want to make that back over the next 10 months [0]:

> For us, a reasonable profit means roughly this: we buy a batch of servers, and we recover the cost in about ten months. Given the risks and the upfront investment, even if we depreciate a server financially over three or five years, commercially we think a ten-month payback is enough. That is the logic behind our current API pricing. For V3.2 Flash and other models, the standard is the same: recover the cost of the equipment in ten months.

[0]: https://thechatr.ai/blog/deepseek-liang-wenfeng-investor-mee...

Re: DeepSeek planning to significantly raise prices

#8
I'm guessing this is almost entirely about the incredibly low cache read prices. Few have come close to them, nothing has a bigger effect on (a typical) session price, and with the price of RAM right now, they have to be the biggest pain point for them right now? A 10x increase in cache read would be a significant increase, yet would still keep them cheaper than every other provider of their model (at least based on the prices at https://openrouter.ai/deepseek/deepseek-v4-pro#providers)

Re: DeepSeek planning to significantly raise prices

#9
post #2

From the announcement: We plan to raise the overall pricing for DeepSeek API services in the near future, with a significant increase expected. Please plan your usage accordingly. The specific pricing plan will be subject to official notice. Now, the question remains, what does that "significant" mean? Would it still be cheaper than the competition, or did they realize they are too cheap for what they offer? Given th…

It’s all about the cache prices. Those dominate usage, cached tokens are easily >90% if not >95% of all used tokens.

Re: DeepSeek planning to significantly raise prices

#10
post #9
post #2

From the announcement: We plan to raise the overall pricing for DeepSeek API services in the near future, with a significant increase expected. Please plan your usage accordingly. The specific pricing plan will be subject to official notice. Now, the question remains, what does that "significant" mean? Would it still be cheaper than the competition, or did they realize they are too cheap for what they offer? Given th…

It’s all about the cache prices. Those dominate usage, cached tokens are easily >90% if not >95% of all used tokens.

Yes, but I'm not sure. They recently dropped cache prices 10 times. Why would they rudder back after only a few months?
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