Comment by White_Wolf
16 hours ago
I really doubt Deepseek is subsidised. It's roughly the same price everywhere you look. Deepseek is using the Huawei hardware (as far as I managed to understand from various articles) and hence the savings.
16 hours ago
I really doubt Deepseek is subsidised. It's roughly the same price everywhere you look. Deepseek is using the Huawei hardware (as far as I managed to understand from various articles) and hence the savings.
I didn't suggest it was. I pointed out that some of the subscriptions offered by the Chinese labs probably are. Not the per token API prices.
And Chinese electricity prices are some of the lowest
Don't know why people keep parroting this, this is incorrect. Chinese electricity prices are equal or slightly cheaper then most of North America. But significant pockets such as those around the Quebec or other hydro plants are significantly cheaper then Chinese power pricing.
Not only that, China may subsidize AI, but so does the US.
China averages 7¢/kWh, almost 1/3 of the US average at 19¢/kWh.
My rates (before PG&E were forced to concede) were as high as 49¢/kWh, a 7x factor.
These are residential rates and not industrial ones, but I hope my point is clear.
China has very cheap power compared to the US, there's a reason why they had to ban bitcoin to get rid of miners.
1 reply →
Okay interesting. I presume that China also has low cost areas too no? Their grid at least seems more stable. Datacenter construction is more likely to raise prices in the US than there.
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Yeah, this argument is bullshit. You can head over to Openrouter and look at the token cost for deepseek-v4-flash and deepseek-v4-pro. They are very competitive on the open market