A customer looks at the menu at an AI bar in Beijing on Aug. 9, where visitors can access DeepSeek for free. Price wars in China are becoming a threat to its large-language model makers.

Ultracheap Chinese artificial intelligence is proving to be a major threat to the shaky economics of Silicon Valley. But the same price war is becoming just as risky for China’s own AI sector.

After warning customers to expect a significant increase in pricing for its services, DeepSeek recently unveiled new rates for its latest V4-Pro and V4-Flash models. The new structure, broken down by peak and off-peak access, marks a sharp jump, with some charges multiple times higher than before.

Does this hike mean the brutal race to the bottom is finally easing? Probably not. Chinese firms have spent more than a year and a half proving they can make bleeding-edge models. The harder part has been figuring out how to get businesses and customers to pay for them.

A man looks at air conditioners at an electronics store in Tokyo. Being unable to meet the energy needs for a decent standard of living can negatively impact one’s mental health, opportunities for social interaction and performance at school and work.
The entrance to Marco, an "izakaya" (Japanese pub) in central Tokyo, where rising costs and changing drinking habits are reshaping Japan’s drinking culture.
Destination Restaurants 2026 award ceremony report

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