- Chinese models are cheaper and lighter than their American counterparts.
- American companies prefer the lower operating costs and portability of the model.
- DeepSeek is now worth around $60 billion
According to a new South China Morning Post According to the report, an increasing number of US companies are adopting Chinese models and tools like DeepSeek amid broader cost concerns.
It appears that DeepSeek offers significantly lower costs than leading US models developed by companies like OpenAI and Anthropic, while still offering the performance they need.
As a result, DeepSeek has risen to the top of several developer rankings as companies continue to cut costs and increase efficiency.
DeepSeek is becoming popular because it’s so…cheap?
According to the report, the trends reflect a much broader shift in the AI market, with companies prioritizing performance less and emphasizing costs more, all in a bid to strike the best and cheapest balance.
DeepSeek is also a popular choice due to its open source approach: unlike many UK alternatives, businesses can download, customize and deploy DeepSeek models into their own infrastructure, helping to reduce reliance on third-party providers. The report details how many Silicon Valley startups have recently turned to Chinese models.
Chinese companies have also realized this and are now releasing lighter models and charging less than typical American companies.
The company has also attracted attention for building competitive models using fewer resources and more efficient training techniques compared to its rivals, which is a good thing given US restrictions on advanced semiconductor exports to China.
DeepSeek also recently raised $7.4 billion in additional funding, with Tencent and CATL each contributing considerable amounts, leaving DeepSeek with a valuation of around $60 billion.
Looking ahead, the upcoming V4 model is expected to offer even better profitability as international customers turn to the Chinese company for cheaper models.
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