DeepSeek made its 75% discount permanent. The AI price war just escalated.
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DeepSeek has permanently locked in a 75% price cut on its V4 Pro model, bringing output token costs to $0.87 per million — well below GPT-5 ($10), Claude Opus 4.7 ($25), and even Google's cost-optimized Gemini Flash ($0.60). Originally a limited promotion, the discount is now permanent, signaling DeepSeek is prioritizing market share over per-unit revenue. The move intensifies the AI pricing war and threatens the revenue-per-token economics underpinning Anthropic's and OpenAI's valuations. Enterprise buyers face a genuine dilemma: DeepSeek's pricing is compelling, but geopolitical risks, data provenance concerns, and an unresolved accusation from Anthropic that DeepSeek engaged in 'distillation attacks' on Claude's outputs complicate adoption. The broader trend points toward commoditization of AI tokens, with the high-margin era potentially ending faster than anticipated.
