DeepSeek's AI models are about to cost four times more (www.engadget.com)

DeepSeek has announced a significant price increase for its AI models, set to take effect on August 16. The newly introduced DeepSeek V4 Pro will cost $3.96 for 1 million output tokens during peak hours, up from $0.87, while off-peak pricing will be $1.98. Similarly, the DeepSeek V4 Flash model will rise from $0.28 to $1.32 during peak hours, with off-peak rates at $0.66. This move marks a shift from DeepSeek's previously competitive pricing strategy, as the company transitions to a model that includes peak and off-peak rates to better manage resource allocation. The price hikes signify a noteworthy pivot for DeepSeek, which has built its reputation on affordable AI services compared to larger Western competitors like OpenAI and Chinese firm Moonshot. Despite the increases, DeepSeek's offerings remain more cost-effective than many alternatives—e.g., Moonshot's Kimi K3 costs $15 per million tokens, while OpenAI's GPT-5.6 Sol is priced at $30. This strategic shift may have implications for AI users seeking budget-friendly options while navigating a market that increasingly demands higher resource costs.