DeepSeek to Raise Prices for AI Developer Services — Current Rates among the Cheapest in the Market

DeepSeek, a Chinese AI company, intends to raise prices for its AI services for developers, as reported by Bloomberg. The company, whose current rates are among the lowest in the market at $0.14 per million input tokens and $0.28 per million output tokens, has not disclosed the new tariffs but called the changes 'significant'. Bloomberg notes that DeepSeek's prices are notably lower than competitors: Chinese Moonshot charges $3 per million input tokens and $15 per million output tokens for its Kimi K3 model, while Anthropic's Fable 5 costs $10 and $50 per million tokens respectively. Tokens measure the volume of information processed by AI models. DeepSeek also plans to build a large data center in Inner Mongolia, aiming for infrastructure capacity of up to 1 gigawatt, as part of its expansion. The company is also considering renting additional computing power from other providers. Nvidia CEO Jensen Huang previously estimated the cost of a 1-gigawatt data center with modern AI accelerators at around $50 billion, though construction in China is typically cheaper than in the US. Additionally, DeepSeek has been working for about a year on developing its own AI processor, which is still in early stages, with discussions ongoing with chip manufacturers and memory developers, and the company is expanding its chip design team.