The whale has resurfaced. DeepSeek, the Chinese AI startup offshoot of High-Flyer Capital Management quantitative analysis firm, became a near-overnight sensation globally in January 2025 with the release of its open source R1 model that matched proprietary U.S. giants.It’s been an epoch in AI since then, and while DeepSeek has released several updates to that model and its other V3 series, the international AI and business community has been largely waiting with baited breath for the follow-up to the R1 moment.Now it’s arrived with last night’s release of DeepSeek-V4, a 1.6-trillion-parameter Mixture-of-Experts (MoE) model available free under commercially-friendly open source MIT License, which nears — and on some benchmarks, surpasses — the performance of the world’s most advanced closed-source systems at approximately 1/6th the cost over the application programming interface (API).This release—which DeepSeek AI researcher Deli Chen described on X as a “labor of love” 484 days after the launch of V3—is being hailed as the “second DeepSeek moment”. As Chen noted in his post, “AGI belongs to everyone”. It’s available now on AI code sharing community Hugging Face and through DeepSeek’s API. Frontier-class AI gets pushed into a lower price bandThe most immediate impact of the DeepSeek-V4 launch is economic. The corrected pricing table shows DeepSeek is not pricing its new Pro model at near-zero levels, but it is still pushing high-end model access into a far lower cost tier than the leading U.S. frontier models.DeepSeek-V4-Pro is priced through its API at $1.74 USD per 1 million input tokens on a cache miss and $3.48 per million output tokens. That puts a simple one-million-input, one-million-output comparison at $5.22. With cached input, the input price drops to $0.145 per million tokens, bringing that same blended comparison down to $3.625.That is dramatically cheaper than the current premium pricing from OpenAI and Anthropic. GPT-5.5 is priced at $5.00 per million input tokens and $30.00 per million output tokens, for a combined $35.00 in the same simple comparison. Claude Opus 4.7 is priced at $5.00 input and $25.00 output, for a com …
