AI Summary

DeepSeek announced a 75 % price cut for its V4‑Pro model, a move that should have benefited enterprise AI vendors and developers. However, many users find that lower prices do not improve margins because agent systems consume tokens at a rate that outpaces the price decline. Over the past two decades, software economics followed a pattern where infrastructure costs fell while application capabilities rose. AI was expected to follow the same trend, but the rapid improvement of frontier models and falling token prices has caused inference costs to remain a significant operating expense.

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