China’s DeepSeek prices new V4 AI model at 97% below OpenAI’s GPT-5.5
SCMP Tech / 4/28/2026
📰 NewsSignals & Early TrendsIndustry & Market Moves
Key Points
- DeepSeek has launched or priced its new V4 AI model at roughly 97% less than OpenAI’s GPT-5.5, using aggressive cost cuts as a competitive lever.
- The company says it will reduce API pricing for “input cache hits” (reused previously processed context) to one-tenth of the prior level, lowering minimum input cost to about US$0.14 per million.
- DeepSeek’s pricing strategy is intended to attract more enterprise customers, developers, and agent-based users amid intensifying competition in the AI market.
- The move is framed as potentially triggering a broader price war among major AI model providers.
DeepSeek has slashed prices on its artificial intelligence models, including its latest V4 which now costs 97 per cent less than OpenAI products, potentially triggering a price war in the highly competitive AI market.
DeepSeek said on Sunday that it would reduce prices for “input cache hits” – where previously processed context was reused – for application programming interface (API) users to one-tenth of the original level, bringing the minimum input cost down to about US$0.14 per million...
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