- Chinese models are cheaper and lighter than their American counterparts
- American firms prefer the lower operating costs and model portability
- DeepSeek is now worth about $60 billion
According to a new South China Morning Post reports that a growing number of US companies are now adopting Chinese models and tools like DeepSeek amid broader cost concerns.
DeepSeek appears to offer significantly lower costs than leading US models developed by firms such as OpenAI and Anthropic, while delivering the performance they need.
As a result, DeepSeek has climbed to the top of several developer rankings as companies continue to reduce 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 cost more, all in an effort to find the best and cheapest balance.
DeepSeek is also a popular option due to its open source approach – unlike many UK alternatives, companies can download, customize and deploy DeepSeek models on their own infrastructure, helping to reduce reliance on external providers. The report details how many Silicon Valley startups have recently turned to Chinese models.
Chinese companies have also noticed 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 competitors, which is a good thing given US restrictions on advanced semiconductor exports to China.
DeepSeek also recently secured $7.4 billion in additional funding, with Tencent and CATL contributing significant amounts each, leaving DeepSeek with a valuation of around $60 billion.
Looking ahead, an upcoming V4 model is expected to offer even better cost-effectiveness as international customers turn to the Chinese firm for cheaper models.
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