DeepSeek Raises AI Service Prices to Fund Data Center
DeepSeek announced a substantial price increase for its AI services to fund a 1 gigawatt computing project in Inner Mongolia.
DeepSeek, a Hangzhou-based AI company, announced a substantial price increase for its AI services in a user notice on Thursday. The company had previously maintained aggressive pricing, charging $0.14 per million input tokens and $0.28 per million output tokens, rates significantly lower than those of competitors like Anthropic and Moonshot.
While the company did not specify the exact new rates, it urged users to plan for the cost adjustment. The price hike is intended to finance a massive data center project in Inner Mongolia designed to secure 1 gigawatt of AI computing power.
This strategic shift occurs as DeepSeek and ByteDance continue to dominate the Chinese AI chatbot sector. This market dominance has increased competitive pressure on smaller firms, including Baidu.