DeepSeek · Claude · China · U.S. · Anthropic · Rest of World
Chinese companies could also lose some competitive edge as U.S. rivals join the price war
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For now, developers say Chinese models still provide the best value for what they are paying.
Key facts
- He pays $500 a month for Claude and ChatGPT for the most complex planning and reviewing tasks, and another $200 a month for Minimax, Moonshot’s Kimi, and Xiaomi MiMo, models that handle 90%
- Vercel, another AI service provider, said DeepSeek’s share of token usage jumped from under 1% to 17% in May, although its share of revenue stayed near 1%
- While an hourlong coding session would cost about $10 on Claude, the same work cost less than 50 cents on DeepSeek, Clott said
- [AI] adoption at large companies is fairly saturated,” Kyle Chan, a fellow at the Brookings Institution, told Rest of World
Summary
U.S. developers and startups are adopting Chinese AI models to significantly reduce their operational costs. Chinese models are gaining market share because they can handle most common tasks at a fraction of the price of U.S. alternatives. Chinese AI companies face major hurdles in converting this popularity into revenue due to political scrutiny and data security concerns in the U.S. market. Stu Clott, an operations manager and part-time developer in San Diego, used to code with Claude. While an hourlong coding session would cost about $10 on Claude, the same work cost less than 50 cents on DeepSeek, Clott said.