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AI price war intensifies as open-source AI becomes global mainstream

Price competition among AI companies is intensifying as Chinese firms expand global share with cost-effective open-source models and leading U.S. companies respond with price cuts. DeepSeek’s new coding model V4 Flash drew attention for performance close to Anthropic’s Claude Opus 4.8 at a far lower price. Interest is also rising in open-weight models, including for video generation. In South Korea, companies are moving ahead of an August evaluation for a government-led foundation model project.