DeepSeek V4 triggers 99% price cuts, forcing Chinese AI rivals to adapt
Xiaomi slashes API costs, while MiniMax launches subscription plans to compete.
DeepSeek's V4 models, known for their aggressive pricing, have upended China's AI market. Xiaomi responded by slashing API costs for its MiMo-V2.5 and MiMo-V2.5-Pro models by up to 99%, leading to a massive spike in usage: the models processed 1.7 trillion tokens in the week ending Monday, a 999% increase, pushing MiMo-V2.5 to 6th place on OpenRouter. This pricing shock is forcing other Chinese AI firms to rapidly adjust their strategies.
MiniMax, another key player, launched its next-generation flagship model, MiniMax M3, which combines token-based billing with subscription plans ranging from $7.24 to $69.28 per month. The shift toward cheap or tiered pricing reflects a cutthroat domestic market where DeepSeek's low-cost approach is compressing margins. Cloud providers are also feeling the pressure as enterprises migrate to cheaper AI solutions, prompting a broader rethink of how to monetize AI services in China.
- Xiaomi slashed API costs for MiMo-V2.5 by up to 99%, triggering a 999% token usage surge (1.7T tokens in a week).
- MiMo-V2.5 climbed to 6th place on OpenRouter, a US-based model marketplace, following the price cut.
- MiniMax launched M3 with subscription plans ($7.24–$69.28/month) and token billing, responding to DeepSeek's pricing pressure.
Why It Matters
DeepSeek's pricing war compels AI rivals to slash costs, reshaping China's cloud and AI monetization strategies.