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DeepSeek announced to raise its API price tremendously

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Re: DeepSeek announced to raise its API price tremendously

#21

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…

As a ML/LLM engineer in a ecommerce analytics SaaS company, I can't stress how useful LLMs are for me, and gladly - for a 5-man company our LLM expenses are 1.5k including coding agents. Great ROI.

Re: DeepSeek announced to raise its API price tremendously

#27
Pricing power is kind of interesting in this situation. The human programmer is utterly dependent atm and will be come more so over time because the programming muscles are headed to near zero level of conditioning. We simply cannot not pay the asking price. The only other phenomenon that can break this phenomenon is the commodification of LLMs and GPU compute. It's really just an unprecedented time.

Re: DeepSeek announced to raise its API price tremendously

#29
It’s interesting to watch what’s happening in the AI market right now. On one hand, low API prices help attract users quickly but on the other hand, running these models is extremely expensive and companies still need to find a way to cover their compute costs... The announcement about future price increases also looks like a classic marketing move, of course. I don’t know, I’m just really curious what this whole market will look like in five years or so
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