The AI pricing landscape is being disrupted from unexpected quarters. DeepSeek R1 offers input tokens at just $0.55 per million—a fraction of GPT-4’s $1.25 and dramatically cheaper than older models.
The December 2025 pricing landscape shows massive variance: from GPT-4 Nano at $0.03 to GPT-4 at $1.25 per million input tokens. DeepSeek’s aggressive pricing suggests the commoditization of AI inference is accelerating faster than expected.
This is part of a comprehensive analysis on AI economics. Read the full analysis on The Business Engineer.
