DeepSeek also can't hold on? API price cuts followed by sharp increases

DeepSeek, a Chinese AI company, has announced significant price increases for its API services, reversing earlier price cuts. The new pricing will take effect on March 1, 2025, with some models seeing increases of over 100%. For example, the input price per million tokens for the DeepSeek-V3 model will rise from 2 yuan to 4 yuan, and the output price from 8 yuan to 16 yuan. The company attributes the increases to rising operational costs, including computing power and bandwidth, as well as sustained investment in research and development. This move has sparked discussions in the industry about the sustainability of AI pricing strategies.