China-based AI company DeepSeek announced that it has permanently reduced the prices of its most advanced V4-Pro model by 75%. The company stated that API pricing will vary between 0.025 yuan and 6 yuan per million tokens depending on the type of usage. Previous prices ranged from 0.1 yuan to 24 yuan. Tokens are defined as text units processed by AI systems. According to a Reuters report, it is not clear whether the price reduction is linked to the increased availability of Huawei’s Ascend 950 chips, but it is known that these chips are used to enhance the performance of V4 models. US restrictions on advanced technology chip exports to China have made it difficult for companies like NVIDIA to offer advanced processors in the Chinese market, while creating opportunities for local chip manufacturers like Huawei. When DeepSeek launched the V4 model last month, it noted that the Pro version could be up to 12 times more expensive than the Flash version due to high computational capacity constraints. The company also stated that prices could significantly decrease with the wider deployment of Huawei’s Ascend 950 super nodes in the second half of the year.