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Chinese AI lab DeepSeek massively undercuts OpenAI on pricing — and that's spooking tech stocks
(www.businessinsider.com)
this post was submitted on 27 Jan 2025
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Technology
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Not a word on Chinese models being censored in the article. What an odd omission.
It should also be pretty obvious that this is following the usual Chinese MO of using massive state subsidies to destroy the international competition with impossibly low dumping prices. We are seeing this in all sorts of sectors.
Okay... But isn't it also possible that AI is massively overvalued and this is a more reasonable price point for the technology?
Energy costs money in China too, they still have coal plants and crazy energy cutback mandates every once in a while.
The truth of the matter is that you need the user interactions from the free model to train and that value cannot be understated and if you are playing catchup, then it's a must. No one would use the Chinese model if it was a shit service.