Comment by davidgrenier
10 hours ago
Yeah I guess two companies who would otherwise be considered going for bankruptcy have models too expensive to run. As they don't see themselves making money any time soon, they have to turn every future model into a weird fascination.
China’s DeepSeek prices new V4 AI model at 97% below OpenAI’s GPT-5.5
Did somebody say that Elon is stealthly funding: Seven lawsuits filed against OpenAI by families of Canada mass-shooting victims
As always, when the going get's tough, the tough ultimately resort to lawsuits.
If the difference is that large, it seems plausible to me that the Chinese models are subsidized in order to gain market share, this is not exactly the first time the Chinese government has done so (or at least been rumoured to have done so).
You should assume that everyone has a hidden agenda when money is involved.
Pricing for DeepSeek V4 flash is $0.14 in/$0.28 out across basically every provider or close to it. It seems most providers just follow the model creator and set their prices to match. V4 pro was set to be $1.74 in/$3.48 out when DeepSeek first announced it; all providers have set their prices to be about that price, & now DeepSeek has set their pricing to $0.435 in/ $0.87 out. I don't know if this is special pricing, or the promise they made for dropping the price when they get more Huawei cards online. It seems that providers like ParaSail, Together, and Novita just set the price when the model comes out and don't compete.
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Why do other model providers who host deepseek v4 have it cheaper than other offerings? Is the Chinese government subsidizing other model providers who download their models for free?
> it seems plausible to me that the Chinese models are subsidized in order to gain market share
In this case, this point is kinda moot since the entire US and SV tech ecosystem, has been subsidized first by the US defense industry during the cold war, and after by the US government funded VCs by its unique cheat-code ability to infinitely print the world reserve currency with little to no inflation consequences upon its own economy, and dump it on its tech sector or on the free market to buy foreign competitors before they become a challenge, in order to be ahead of everyone else.
Given this, I find criticisms of China's state subsidize to pale in comparison, when we talk about what is "fair".
It’s their promo price till the end of May. It’s also not nearly as good as 5.5. I’ve had 3 different tasks just this week that deepseek has failed at that 5.5 does perfectly.
I just tried to do some large scale summarization and Deepseek v4 pro is pretty shit. This cannot even touch 5.5. 5.5 took 3 mins and the output was stellar, Deepseek took 20 and did not adhere to the output format at all after multiple attempts.
think about it in the form of who can pay. theyre at b2b. and swiftly moving to government.
All that user data is a huge asset for government contracts.
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There's a story to tell in that: 1) Google has a transformer-based AI that hallucinates too much to release 2) OpenAI replicates the tech then YOLOs it 3) Everyone says: look how Google is getting left behind! Google thinks: the second mouse gets the cheese. 4) Google gets the cheese, OpenAI is absorbed by Microsoft or just disappears (or both).
Certainly could turn out that way.
TPUs were their real moat. All that capacity used throughout their suite of products on non-chatbot features, ready to rip for consumers once soon as somebody else opened the floodgates to the public.
Now all their competitors lose money on every token paying their cloud providers (of course it's funny money, maybe they're just giving the cloud providers equity) while Google is sitting calmly over there, actually owning everything they need for any eventuality, and beholden to nobody.