DeepSeek cuts AI API prices for developers by up to 75% with off-peak discounts, pressuring OpenAI & Google

Nickie Louise Posted On February 26, 2025

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Following the success of its R1 model, DeepSeek is turning up the heat on AI pricing. The Chinese AI startup announced on Wednesday new off-peak discounts that slash API costs by as much as 75%, a move that could push competitors, including OpenAI and Google, to rethink their pricing strategies.

Major Price Cuts Aim to Disrupt AI Market

In a post on X, DeepSeek highlighted the changes:

*”Off-Peak Discounts Alert!
Starting today, enjoy off-peak discounts on the DeepSeek API Platform from 16:30–00:30 UTC daily:

🔹 DeepSeek-V3 at 50% off
🔹 DeepSeek-R1 at a massive 75% off

Maximize your resources smarter — save more during these high-value hours!”*

🚨 Off-Peak Discounts Alert!

Starting today, enjoy off-peak discounts on the DeepSeek API Platform from 16:30–00:30 UTC daily:

🔹 DeepSeek-V3 at 50% off
🔹 DeepSeek-R1 at a massive 75% off

Maximize your resources smarter — save more during these high-value hours! pic.twitter.com/00Qa6iNbcG

— DeepSeek (@deepseek_ai) February 26, 2025

Targeting Developers in the U.S. and Europe

The company’s decision to cut prices comes at a time when its AI models are already shaking up the industry. Just last month, DeepSeek’s growing influence spooked investors, leading to a sell-off in tech stocks over concerns that its low-cost models could undercut established players.

Between 16:30 GMT and 00:30 GMT, developers using DeepSeek’s API will now pay significantly less to access its models. The V3 model sees a 50% price drop, while the R1 model—already a major player in the AI space—gets a 75% discount during these hours. While DeepSeek refers to this as “off-peak” pricing, the time slot aligns with business hours in the U.S. and Europe, a clear signal that the company is targeting international developers.

DeepSeek’s Open-Source Approach Sparks Industry Shakeup

DeepSeek has been aggressively shaking up AI pricing since last May, when its V2 model sparked a price war among Chinese AI companies. Since then, the company has continued to push boundaries, embracing an open-source approach while keeping costs low. The competition has been forced to react—OpenAI recently cut its API prices, and Google introduced lower-cost access to Gemini.

What’s Next for DeepSeek?

The latest round of discounts suggests DeepSeek isn’t slowing down. Sources familiar with the company say a successor to the R1 model is already in the works, which could add even more pressure on competitors scrambling to keep up.