Free NewsletterPro Login

DeepSeek Makes 75% Price Cut On V4 Pro Permanent

Published May 24, 2026
Share:
Summary:
  • China's DeepSeek is making the 75% discount on its V4 Pro AI model permanent instead of letting it expire May 31.
  • Top-tier pricing on V4 Pro dropped from $3.48 to $0.87 per million tokens.
  • The move raises price pressure on rivals like OpenAI's GPT-5, Google's Gemini 3.5 Flash, and Anthropic's Claude.

DeepSeek had a "discount" running on its flagship AI model. It was supposed to end May 31. Now it isn't ending at all.

The Chinese AI startup just made the 75% price cut on its V4 Pro model a permanent number, and the rest of the industry has to react.

The New Price Sheet

DeepSeek V4 Pro's top-tier price just dropped from $3.48 to $0.87 per million tokens. The cheap end fell just as far, settling at a fraction of a cent per million tokens.

In plain English: enterprise users burning through billions of tokens a day got a big bill cut. For the rest of the AI industry, this is a price floor that didn't exist a week ago.

The company released V4 Pro and V4 Flash about a month ago. DeepSeek marketed them as the start of the "era of cost-effective" long-context AI, and the new rate card bakes that pitch into pricing.

Long context matters here because pricing scales with how many tokens a model has to handle. A discount that hits hardest on huge inputs is a discount built for enterprise workloads.

Want the daily breakdown of what's moving in AI and tech? Market Briefs lands in your inbox every weekday morning, and a free investing masterclass comes with sign-up.

Who Sits At Higher Prices

The list of names sitting at higher prices is short and familiar. OpenAI's GPT-5, Google's Gemini 3.5 Flash, and Anthropic's Claude.

Anthropic has accused DeepSeek of "distillation attacks," meaning training cheaper models by copying outputs from Claude. The pricing gap just got wider regardless of who's right.

For enterprise customers, the math gets simple. If two models do the same job, the one charging a fourth of the price wins more deals.

This isn't an academic comparison anymore. Buyers running AI agents at scale are now looking at swap-in options that quietly cut their inference bills by 75%.

DeepSeek's $45 Billion Strategy

DeepSeek is reportedly chasing a $45 billion valuation. Cutting prices and giving up margin to grab market share lines up with that pitch - own the demand now, monetize later.

It's the same playbook Amazon ran in retail. Lose money on price, win the customer, build the moat.

The move also fits the broader Chinese AI strategy. State-level support and access to home-built compute let the model providers absorb hits to margin that Western rivals can't easily match.

That's a structural change. Rivals like Anthropic and OpenAI are still selling to enterprises one big deal at a time, while DeepSeek competes on rate card.

What To Watch

The pressure point isn't OpenAI. It's the smaller AI startups stuck in the same price band, because they can't undercut a Chinese giant with deep funding.

For investors, the trade splits in two. AI compute and chips still ride the demand wave, because more usage means more tokens. AI software margins, on the other hand, just got harder to defend.

Watch the next earnings call from any AI-pure software name. The first time a CFO blames DeepSeek pricing for soft guidance, the narrative shifts.

Join Market Briefs for the daily five-minute read - and grab a 45-minute course on finding investments as a free bonus.

Disclosure

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

May 5, 2026
How to Create Multiple Income Streams: A Beginner's Playbook
  • Most people rely on a single income stream from their job - which is also the most heavily taxed.
  • Multiple income streams come from a mix of cash flow, dividends, side businesses, real estate, and royalties.
  • The fastest path for most beginners is starting with one extra stream - usually dividends or a side hustle - and stacking from there.
Read More
May 5, 2026
The 60/40 Portfolio Explained: A Beginner's Guide
  • A 60/40 portfolio holds 60% in stocks and 40% in bonds (or other fixed income).
  • It's designed to balance growth from stocks with stability from bonds.
  • Your "right" mix depends on age, time horizon, income needs, and how well you sleep when markets drop.
Read More
May 5, 2026
How to Invest in Silver: A Beginner's Guide
  • Silver is both a precious metal and an industrial metal, used in solar panels, electronics, and medical tech.
  • Investors can buy silver four main ways: physical bars and coins, ETFs, mining stocks, or futures contracts.
  • Most beginners are best served by allocating a small slice of their portfolio to silver - usually between 1% and 3%.
Read More
May 1, 2026
Asset Allocation by Age: The Right Portfolio Mix at Every Stage of Life
  • Younger investors should hold mostly stocks because they have decades to recover from crashes and benefit from compounding.
  • Allocations gradually shift toward bonds and stable income as retirement approaches, but stocks remain important even past age 65 to outpace inflation.
  • Annual rebalancing is essential - it forces you to buy low and sell high while keeping your portfolio aligned with your actual life stage.
Read More
April 30, 2026
Stablecoin Explained: Why Some Cryptocurrencies Actually Aren't Volatile
  • Stablecoins are cryptocurrencies pegged to stable assets like the US dollar, giving crypto-style speed and access without the volatility of Bitcoin or Ethereum.
  • Fiat-backed stablecoins like USDC are the safest option, while algorithmic stablecoins have failed spectacularly and should generally be avoided.
  • Stablecoins fit a portfolio as cash reserves with better yields, a hedge against crypto volatility, and a fast, cheap rail for international transactions.
Read More
April 30, 2026
Buy Now, Pay Later Risks: Why This "Easy" Payment Method Is Dangerous to Your Wealth
  • Buy now, pay later services like Klarna, Affirm, and Sezzle are debt products designed to feel harmless while keeping users in a cycle of overspending.
  • BNPL exploits psychological debt blindness, triggers late fees, and damages credit scores without helping users build positive credit history.
  • Building real wealth means waiting 30 days, paying upfront when you have the cash, and avoiding systems built to extract money from your future income.
Read More
April 30, 2026
Dividend Payout Ratio: The Secret Metric That Shows If a Stock Is Safe or Risky
  • Dividend payout ratio is total dividends paid divided by net income, showing the percentage of earnings a company returns to shareholders.
  • A 20-50% payout ratio is generally safe and sustainable, while ratios above 75% often signal a dividend cut is coming.
  • High dividend yields can be warning signs, not opportunities - safety and dividend growth matter more than the headline yield number.
Read More
April 30, 2026
Ethereum for Beginners: What It Is and Why Smart Investors Are Paying Attention
  • Ethereum is a blockchain platform that runs smart contracts, while Ether (ETH) is the cryptocurrency that powers the network.
  • Use cases include decentralized finance, NFTs, gaming, supply chain tracking, and digital identity - many still experimental.
  • Most investors should treat Ethereum as a small allocation hedge using dollar-cost averaging, not a get-rich-quick lottery ticket.
Read More
April 30, 2026
Dollar Cost Averaging Strategy: How to Beat Emotion and Build Wealth Steadily
  • Dollar cost averaging means investing the same amount at regular intervals regardless of what the market is doing.
  • The strategy automatically buys more shares when prices are low and fewer when prices are high, lowering your average cost over time.
  • DCA removes emotion, eliminates the need to time the market, and turns volatility into a mathematical advantage for long-term investors.
Read More
April 30, 2026
The BRRRR Strategy: How to Build Real Estate Wealth Without Big Money Down
  • BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat - a five-step framework for scaling real estate without saving for big down payments.
  • The strategy works by buying distressed properties below market value, adding value through smart renovations, and pulling out equity through refinancing.
  • Tax advantages like depreciation and mortgage interest deductions make BRRRR a powerful tool for owners willing to manage tenants and contractors.
Read More
1 2 3 20
Share via
Copy link