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DeepSeek releases V4 AI models, intensifying price war with U.S. rivals

Created at 31 Jul · 9:16 AM1 source↑ Market-relevant
IN SHORT

Chinese AI firm DeepSeek has launched preview versions of its V4 models, including V4-Pro and V4-Flash, featuring enhanced capabilities and significantly lower pricing than Western competitors. The release intensifies the global competition in advanced AI.

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Key Numbers

1 milliontoken context windows for V4-Pro and V4-Flash
1.6 trilliontotal parameters for V4-Pro
49 billionactivated parameters per inference pass for V4-Pro
98%less cost for V4-Pro compared to GPT 5.5 Pro

Who's Involved

DeepSeek
Chinese AI startup releasing V4 models
OpenAI
Rival AI company that released GPT-5.5
Google
Rival AI company with Gemini models
Anthropic
Rival AI company with Claude models
Huawei
Tech giant whose chips support DeepSeek's V4 models
DeepSeek releases V4 AI models, intensifying price war with U.S. rivals

↳ Why This Matters

DeepSeek's aggressive pricing and advanced model capabilities challenge Western AI dominance, potentially lowering costs for businesses and accelerating AI adoption globally. This move signals a significant escalation in the AI rivalry between China and the U.S., impacting chip manufacturers and the broader AI ecosystem.

Key facts

  • DeepSeek launched the beta versions of its V4 AI models, including V4-Pro and V4-Flash.
  • The new models boast enhanced knowledge, reasoning, and agentic capabilities.
  • DeepSeek's V4 models utilize Huawei chips, decreasing dependence on U.S. suppliers.
  • The V4-Pro model is priced substantially below Western AI offerings.
  • DeepSeek claims its V4-Pro Max outperforms OpenAI's GPT-5.2 and Google's Gemini 3.0-Pro on reasoning benchmarks.

DeepSeek, a Chinese artificial intelligence company, has released the beta versions of its latest V4 models, intensifying the global price war in advanced AI. The V4-Pro and V4-Flash models, launched on Friday, offer significant improvements in knowledge, reasoning, and agentic capabilities. These new models are partly supported by computer chips from Chinese tech giant Huawei, reducing DeepSeek's reliance on U.S. chipmakers like Nvidia.

The V4 models come with one million token context windows and are priced considerably lower than their Western counterparts. DeepSeek claims its V4-Pro Max version demonstrates superior performance on standard reasoning benchmarks compared to OpenAI's GPT-5.2 and Google's Gemini 3.0-Pro, though it falls slightly short of GPT-5.4 and Gemini 3.1-Pro. This release follows OpenAI's launch of its GPT-5.5 model just hours prior.

The V4-Pro model features 1.6 trillion total parameters, making it the largest open-source model currently available. It utilizes a Mixture-of-Experts approach, activating only a relevant slice of its parameters per request to enhance efficiency. DeepSeek's previous specialized reasoning model, R1, released in January 2025, had previously surprised markets with its cost-effectiveness.

Frequently asked questions

DeepSeek has released the beta versions of its V4-Pro and V4-Flash AI models, which feature enhanced knowledge, reasoning, and agentic capabilities.

DeepSeek claims its V4-Pro Max version offers superior reasoning performance compared to OpenAI's GPT-5.2 and Google's Gemini 3.0-Pro, and is priced significantly lower than comparable Western models.

The use of Huawei chips reduces DeepSeek's reliance on U.S. chipmakers like Nvidia, potentially impacting the global semiconductor supply chain for AI.

DeepSeek's lower pricing strategy intensifies competition with U.S. AI firms, potentially driving down costs for advanced AI models and services globally.

What Happens Next

01DeepSeek may implement peak-hour pricing plans for its AI models.
02Further comparisons between V4 models and Western competitors are expected.

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Cadence

How It Developed

DeepSeek released preview versions of its V4 AI models, including V4-Pro and V4-Flash.
The new models offer improvements in knowledge, reasoning, and agentic capabilities.
V4 models are supported by Huawei chips, reducing reliance on U.S. chipmakers.
DeepSeek's V4-Pro is priced significantly lower than comparable Western models.
The V4-Pro Max version claims superior performance on reasoning benchmarks compared to OpenAI's GPT-5.2 and Google's Gemini 3.0-Pro.
OpenAI released its GPT-5.5 model shortly before DeepSeek's announcement.

Sources

T1
DeepSeek releases beta version of V4 models as AI price war heats upNikkei Asia
T2
China's DeepSeek rolls out a long-anticipated update of its AI modelapnews.com
T2
DeepSeek Slashes Fees for New AI Model in Chinese Price Warbloomberg.com
T2
DeepSeek V4 Is Here—Its Pro Version Costs 98% Less Than GPT 5.5 Pro - Decryptdecrypt.co

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