The ones paying attention and on a budget would still use them. “The best” of anything is usually not cost effective.
Even before reducing the prices, they were already 2 to 3 times cheaper than equivalent alternatives from Anthropic’s ($3in, $15out) and OpenAI’s ($1.75in, $14out) at $1.74in and $3.48out. Now they’re around 10x cheaper.
Edit: Deepseek V4 Flash is the leading model on OpenRouter
Also, the big models are in the infant stages of turning the monetization screws. This could be a tactic to knock their owners’ legs out from under them. If they can’t turn up their prices as much or as fast as they had hoped due to the competitive pressure, venture capital may begin to divest sooner. At their current debt levels, that would literally end OpenAI and I believe also Anthropic.
If a temporary “permanent” price cut wipes out some competitors, that will make for smoother sailing in the future for them to raise prices more than they otherwise would have been able to, quickly recouping the cost of the price reduction and then all profit after that.
There is some, off the top of my head theres minstrel, inception, H company, Sarvam quite a few good Chinese ones. They’re all trying to sell inference is little niches but are slowly getting eaten by giants.
You could also include the AI from the faang companies because if they cannot complete they’ll likely sell off all their compute.
Actually I dont really know if they’re good, I ain’t paying an ai company but I read a lot of hacker news threads on their model release impressions.
They have to cut the price because its behind the frontier models. No one would buy it otherwise
The ones paying attention and on a budget would still use them. “The best” of anything is usually not cost effective.
Even before reducing the prices, they were already 2 to 3 times cheaper than equivalent alternatives from Anthropic’s ($3in, $15out) and OpenAI’s ($1.75in, $14out) at $1.74in and $3.48out. Now they’re around 10x cheaper.
Edit: Deepseek V4 Flash is the leading model on OpenRouter
so much for no one buying it
Also, the big models are in the infant stages of turning the monetization screws. This could be a tactic to knock their owners’ legs out from under them. If they can’t turn up their prices as much or as fast as they had hoped due to the competitive pressure, venture capital may begin to divest sooner. At their current debt levels, that would literally end OpenAI and I believe also Anthropic.
If a temporary “permanent” price cut wipes out some competitors, that will make for smoother sailing in the future for them to raise prices more than they otherwise would have been able to, quickly recouping the cost of the price reduction and then all profit after that.
If it knocks out small competitiors then the big players will buy them up for the compute alone.
I’m not aware of any noteworthy small competitors in the space. Who do you mean?
There is some, off the top of my head theres minstrel, inception, H company, Sarvam quite a few good Chinese ones. They’re all trying to sell inference is little niches but are slowly getting eaten by giants.
You could also include the AI from the faang companies because if they cannot complete they’ll likely sell off all their compute.
Actually I dont really know if they’re good, I ain’t paying an ai company but I read a lot of hacker news threads on their model release impressions.