Quick Look
Chinese AI firms are changing pricing strategies due to competition from DeepSeek's V4 models, with Xiaomi slashing API costs by 99% for its MiMo-V2.5 model
AI-generated summary
Why It Matters
Chinese AI firms are facing increased competition due to the release of DeepSeek's V4 models
Chinese artificial intelligence developers are rapidly overhauling their pricing strategies as DeepSeek’s ultra-cheap V4 models trigger a new round of competition, forcing rivals to rethink how they monetise AI in a cutthroat domestic market.
Smartphone and electric-vehicle maker Xiaomi has emerged as one of the latest companies to respond, slashing application programming interface (API) costs for its MiMo-V2.5 model by as much as 99 per cent from previous levels.
Usage of Xiaomi’s MiMo-V2.5 and MiMo-V2.5-Pro models surged following last week’s pricing announcement, with MiMo-V2.5 climbing to sixth place on US-based model marketplace OpenRouter. The model processed 1.7 trillion tokens in the seven days to Monday, representing growth of more than 999 per cent from the previous week.
Other Chinese AI firms are experimenting with different approaches to monetisation.
The transition has not been without friction.
