OpenAI rival DeepSeek raised prices up to 4.5 times. Its CEO says demand held.
Chinese AI company DeepSeek AI raised the prices of its AI models by 2.3 to 4.5 times last month.
Peak-hour prices for its V4 models were set to quadruple, PYMNTS reported on 24 September, citing The Information.
The Information has since put its yearly revenue pace at $1 billion, double the previous level. That figure is the current monthly revenue multiplied by twelve.
Chief executive Liang Wenfeng told investors the increase did not hurt demand, according to the report. DeepSeek also remains among the cheapest suppliers of major AI models, despite raising some prices as much as 4.5 times in one month.
DeepSeek is now preparing a listing on the Shanghai Stock Exchange. It aims to raise 50 billion yuan, about $7.5 billion, at a value of about $75 billion.
DeepSeek did not immediately reply to PYMNTS' request for comment.
Does your AI contract limit how much the model supplier can raise prices, including on a new model version?
Image: AI-generated.
Sources
Our file on OpenAI
- 7 Oct
Analysts said Claude subscribers use 42% of Anthropic's computing. They pay 10% of sales.
- 4 Oct
AI chipmaker Cerebras debuted at $95 billion. It is now worth $39 billion.
- 1 Oct
Google's new AI guessed wrong on 15% of questions it couldn't answer. OpenAI's 51%.
- 30 Sept
OpenAI faced Florida's 49-page bid to halt model development without outside safeguards.
- 30 Sept
OpenAI sought $30 billion, valuing it at $1.4 trillion, Bloomberg reported.
For your next steering committee
- 1Ask when each major software contract renews and what notice period applies.
- 2Ask which price protections are written into the contract and which rest on a sales conversation.
- 3Ask what a price rise on that line would do to the run budget, and who would notice it first.
Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01
Welcome back. · Issue 01
