Interesting to see that peak hours are work hours in China, night in the US and Europe, and also morning in Europe. So Deepseek's customers are mostly domestic.
Not that surprised about it. Personally I've seen companies really just go all-in on a single provider, and that has usually been Anthropic. I don't think we're allowed to run Chinese models even locally.
It mostly hurts people in countries with weak purchasing power. DS was the main game in down for them.
Personally, I don't think we've seen the total end of dirt cheap LLMs, it's just a frontier lab doesn't want to be in business of serving half the world.
This is somewhat funny when you realise the data centres are now going to start a process that looks very so slightly like daydreaming. Depending on the time of day they're going to be thinking about different things in a cyclic manner. They're going to be doing things like finishing a hard days work then kicking back to think about tricky math problems.
We'll have Dwarkesh's "datacenter full of geniuses" with 99% of the geniuses coding up CRUD apps, then the dusty GPU in the corner, with the "do not disturb" sign on it, pipes up "You're absolutely right! The answer is 42!".
That’s an interesting thing to think about. Still, it’s important for us to remind ourselves that “looks very slightly like” is not the same as the real thing. The A in AI stands for artificial.
The summary of this paper describes my sentiment in better words than I have:
They benefit from a strong captive market because Chinese firms cannot use Nvidia chips and are legally barred from processing data abroad, forcing them to rely on domestic infrastructure.
Bytedance which runs China’s most popular Doubao AI chatbot; is spending $70B in CapEx this year, most of it outside of China (Malaysia, Thailand, Brazil, etc; and they are allowed to lease NVIDIA chips). This is roughly 50% of Microsoft CapEx.
There is no relative/percentage increases noted (understandably). Just because i'm lazy: roughly how much more expensive is it to work with v4 flash and v4 pro through the API, compared to before the price increases? Is it 2x, 5x, 10x higher?
Someone made a comparison yesterday, including relative increases, and GPT-5.6 Luna, then later someone also added more OpenAI, Anthropic, K3 and GLM 5.2: https://news.ycombinator.com/item?id=49286679
Already outdated though I think, as GLM 5.3 is latest now :)
I'm no expert in pricing economics but once peak/off-peak pricing arrives, it seems like tokens are going to be like electricity or long distance phone minutes where it just becomes a commodity/race to the bottom.
Yes. I focus on pricing software and I’m a bit baffled why frontier models are pushing tokens.
It’s a race to the bottom, and the bottom is unlimited use for a flat monthly rate.
Granular pricing (tokens, minutes, etc) is pretty anti-customer generates less revenue than customer value-based subscriptions (why SaaS is such a good business model)
But presumably consumers aren’t where the majority of the spend will be.
Consumers don’t generally get usage-based pricing because of the inconvenience and unpredictability, but B2B SaaS products utilize usage-based pricing all the time.
Somehow I keep hearing the rumblings of crypto maximalists trying to merge tokens. I actually wouldn’t mind since I signed up directly with some providers I’ve stopped using and have small amounts of credits strewn across the web.
Does the API response include a "service tier" response to indicate whether you paid peak/off-peak for a given request? I like to compute cost for each request, and save it with my results.
With proprietary labs lowering their prices and Deepseek raising theirs over time, wouldn't it possible to extrapolate a graph to look at where the terminal frontier-model million-token-cost asymptotes to?
This is good for other competitors I guess. People rarely calculate the bump in price but the fact that price is increasing might bring them to other vendors.
That's a hefty increase. Flash pricing during peak is now 1.32/M out, compared to the current 0.28/M, which in turn is a quite a bit above the cheapest provider at 0.16/M.
So many changes in so little time, that it all makes no sense. Continuous churning. Reminds me of the experience of trying to be on top of the dependencies in a medium-large JS project.
I am a person that buys into a tool or a process and expects it to be part of the life with no major changes through the years (or as long as the need exists). But AI? You buy into something today, not 2 weeks have passed and there's already a large "update" introduced to the conditions or the optimal usage patterns you should be adopting.
It's tiring. Makes all prices and offers feel so unreliable and gets me a bit more disinterested each time they change.
No, I'm talking about the whole sector, not specifically about DeepSeek.
Fully knowing that it is a new industry living its own infancy, it is perfectly normal that there is instability and numerous swings on pricing, conditions, or direction.
But it's not less real that such process can produce churn and consumer fatigue.
That sounds like a policy written by someone who doesn't understand how LLM's work...
For European and US customers this is effectively 2x increase. I think i wll keep using both Flash and Pro as before.
EDIT: Misread numbers to believe off-peak kept old prices
They are hoarding HW at massive scale, they make it harder and more expensive to own
Just because you are fine with the new price doesn't mean it's not a problem
Perhaps it's time to pop this bubble
Personally, I don't think we've seen the total end of dirt cheap LLMs, it's just a frontier lab doesn't want to be in business of serving half the world.
You certainly don't need Fable to code up a basic web app, any more than you need a Ferrari to go grocery shopping,
The summary of this paper describes my sentiment in better words than I have:
https://www.nature.com/articles/s41599-025-05868-8
It’s very easy for the average person to mistake linguistic ability and simulated problem solving for intelligence and sentience.
https://www.bloomberg.com/news/articles/2026-06-17/microsoft...
Bytedance which runs China’s most popular Doubao AI chatbot; is spending $70B in CapEx this year, most of it outside of China (Malaysia, Thailand, Brazil, etc; and they are allowed to lease NVIDIA chips). This is roughly 50% of Microsoft CapEx.
https://www.tomshardware.com/pc-components/gpus/chinas-byted...
Already outdated though I think, as GLM 5.3 is latest now :)
The same motivation of course - the GPUs have a finite service lifetime, and to maximize revenue you need to keep them busy 24x7.
It’s a race to the bottom, and the bottom is unlimited use for a flat monthly rate.
Granular pricing (tokens, minutes, etc) is pretty anti-customer generates less revenue than customer value-based subscriptions (why SaaS is such a good business model)
Consumers don’t generally get usage-based pricing because of the inconvenience and unpredictability, but B2B SaaS products utilize usage-based pricing all the time.
that's a good outcome - it means they're fungible, and easily available.
https://news.ycombinator.com/item?id=49287881
https://news.ycombinator.com/item?id=49285160
https://openrouter.ai/deepseek/deepseek-v4-flash-0731#provid...
The big Covid migrations (startup prople migrating to the countryside),
Will we see the big AI migrations (people travelling to where AI is the cheapest)?
DeepSeek-V4-Flash (off-peak, x2 for peak)
* Cache Hit $0.007 (x2.5)
* Cache Miss $0.22 (x1.5)
* Output $0.66 (x2.25)
DeepSeek-V4-Pro (off-peak, x2 for peak)
* Cache Hit $0.022 (x6)
* Cache Miss $0.66 (x1.5)
* Output $1.98 (x2.25)
Peak Hours: 01:00–04:00 and 06:00–10:00 UTC
Effective from: 16:00, August 16, 2026 (UTC)
It’s still cheaper than everybody else.
https://openrouter.ai/deepseek/deepseek-v4-flash#providers
- but what matter - is cache hit
even now deepseek's off-peak hours for cache hit (0.007) is lower than other providers (~0.01)
I am a person that buys into a tool or a process and expects it to be part of the life with no major changes through the years (or as long as the need exists). But AI? You buy into something today, not 2 weeks have passed and there's already a large "update" introduced to the conditions or the optimal usage patterns you should be adopting.
It's tiring. Makes all prices and offers feel so unreliable and gets me a bit more disinterested each time they change.
These being open, you can keep using the old models indefinitely for as long as there are providers offering them.
Fully knowing that it is a new industry living its own infancy, it is perfectly normal that there is instability and numerous swings on pricing, conditions, or direction.
But it's not less real that such process can produce churn and consumer fatigue.