DeepSeek has significantly lowered the cost of its V4 AI model, making it nearly 97% cheaper than competing OpenAI products. This aggressive pricing strategy could ignite a major price war within the competitive artificial intelligence market.

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...