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Applied AI·September 18, 2026·1 min read

China's AI price war is entering a new phase

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China’s AI price war moving into a new phase after DeepSeek’s low-cost push means model inference is being treated as a commodity to win share, not margin. If you sell AI software outside China, assume customer expectations on per-token or per-seat pricing will keep drifting down and differentiate on workflow depth, data, or guarantees—not raw model access.