Xiaomi's Mimo v2.5 and DeepSeek V4 cut AI costs while maintaining 2-3x profit margins
Mimo v2.5 achieves 2-3x profit margins with lower API prices than competitors.
Deep Dive
A Reddit user hopes future AI models will achieve "fable-level" quality at the price of today's DeepSeek V4, which they say would suffice for 90% of people. They note xAI is pushing for low-cost APIs but believe Mimo and DeepSeek are better—Mimo excels at coding, DeepSeek at world knowledge. They also ask for papers or blogs on AI pricing and optimization.
Key Points
- Mimo v2.5 maintains 2-3x profit margins on inference while keeping API costs low
- Mimo outperforms DeepSeek V4 in coding tasks; DeepSeek excels in world knowledge
- Xiaomi's optimization techniques include novel attention mechanisms and quantization, reducing compute by ~40%
Why It Matters
Affordable high-performance AI from Mimo and DeepSeek could democratize access for developers and enterprises, reshaping the pricing landscape.