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DeepSeek permanently reduces the price of its flagship V4 model by 75 percent

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Why This Matters

DeepSeek's decision to permanently slash the price of its V4 Pro model by 75% marks a significant shift towards making advanced AI technology more accessible and affordable for enterprise and individual users. This move could challenge existing market leaders by offering a cost-effective alternative, potentially reshaping pricing strategies across the AI industry. The price reduction emphasizes the growing importance of affordability in AI adoption and competition among major tech players.

Key Takeaways

DeepSeek is leaning hard into being the "cost-effective" choice for AI agents. According to its website, the Chinese startup is dropping the price for its latest flagship model, DeepSeek V4 Pro, to a fourth of its original price. This latest price update makes permanent the 75 percent discount promotion that was previously supposed to end on May 31, 2026.

As seen on the website's pricing page, the DeepSeek V4 Pro prices now range from $0.003625 to $0.87 per one million tokens, compared to the previous range between $0.0145 to $3.48 for every million tokens. The company's decision to permanently reduce the price comes a month after it released its V4 models, Pro and Flash, which it claimed would welcome the "era of cost-effective 1M context length."

DeepSeek's deep discounts should prove to be a major cost savings for enterprise accounts or power users who go through millions of tokens in a day. The major price drop also presents a more affordable alternative to other popular AI models, like OpenAI's GPT-5 or the recently released Gemini 3.5 Flash from Google. DeepSeek's price undercutting might provoke competitors, like Anthropic, who previously accused the Chinese company of "distillation attacks" that improperly learn from Claude's more capable AI models.