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DeepSeek releases V4 AI model matching top U.S. competitors at 1/6th the cost, forcing a price collapse in enterprise AI

DeepSeek, a Chinese AI startup, released DeepSeek-V4 last night—a 1.6-trillion-parameter AI model (a measure of the AI's size and capability) available free under an open-source MIT license. The model performs near or better than Claude Opus 4.7 and GPT-5.5, the most advanced closed-source AI systems from Anthropic and OpenAI, but costs about 1/6th as much to run via API.

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