Many US tech firms are turning to China's DeepSeek as the bill for homegrown AI bites American AI companies could learn a thing or two

Date:
Thu, 04 Jun 2026 20:20:00 +0000

Description:
American models are simply too expensive US firms are now turning to
DeepSeek for cheaper costs and portability.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Chinese models are cheaper and lighter then their equivalent US models American firms prefer the lower operating costs and model portability DeepSeek is now worth around $60
billion According to a new South China Morning Post report, an increasing number of US companies are now adopting Chinese models and tools like
DeepSeek amid broader cost concerns.

It seems that DeepSeek offers significantly lower costs that leading US
models developed by firms like OpenAI and Anthropic, while delivering the performance that they need. As a result, DeepSeek has climbed to the top of several developer rankings as businesses continue to cut costs and increase efficiency. Latest Videos From Watch full video here: DeepSeek is becoming popular because it's so... cheap? According to the report, the trends
reflects a much broader shift in the AI market, with companies prioritizing performance less and emphasizing cost more, all in a bid to strike the best and cheapest balance.

DeepSeek is also a popular option because of its open-source approach unlike many UK alternatives, companies can download, customize and deploy DeepSeek models on their own infrastructure, which helps to reduce dependency on external providers. The report details how many Silicon Valley startups have recently turned to Chinese models. You may like US State Department upgrades AI theft accusations to target Chinese giants Why is OpenClaw so popular in China? China refuses to buy Nvidias AI chips after Trumps tariff plan backfires

Chinese companies have also noticed this, and are now releasing lighter
models and charging less than typical US companies.

The company has also attracted attention for building competitive models
using fewer resources and more efficient training techniques compared with rivals, which is a good thing given US restrictions on advanced semiconductor exports to China. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners
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DeepSeek also recently secured $7.4 billion in additional funding, with Tencent and CATL contributing considerable amounts each, leaving DeepSeek
with a valuation of around $60 billion.

Looking ahead, an upcoming V4 model is expected to offer even better cost efficiency as international customers turn to the Chinese firm for cheaper models. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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Link to news story: https://www.techradar.com/pro/many-us-tech-firms-are-turning-to-chinas-deepsee k-as-the-bill-for-homegrown-ai-bites-american-ai-companies-could-learn-a-thing -or-two


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