Aravind Srinivas Explains DeepSeek Low API Prices
Aravind Srinivas attributes cheap API to compact models versus Claude Opus.
Aravind Srinivas retweeted jun_song addressing questions on DeepSeek API pricing. The post rejects claims of price dumping to corner the market. Srinivas states DeepSeek achieves low prices through highly efficient compact models that are significantly smaller than Claude Opus and Sonnet while matching performance. These models handle large traffic volumes on the same compute. Chamath Palihapitiya separately posted that some expect prices to keep falling substantially. The visible posts focus on model size and efficiency as the direct cause of the pricing.
People keep asking why DeepSeek’s API is so cheap. Some even make absurd claims that they’re dumping prices to corner the market. No, the answer is simple: their model size is ridiculously small compared to its performance. It's 10x smaller than Opus, and 5x smaller than…