Is AI pricing leading to a second DeepSeek moment? - Asian Tech Roundup

Plus: Apple dispute’s India’s authority in antitrust case

Welcome to Computing's weekly roundup of tech news in Asia. This time we look at frontier model economics, Apple’s push back against India’s competition watchdog and Korea’s defiance of US interference in the Coupang case.

When DeepSeek first burst onto the global AI scene in late 2024, the so‑called “DeepSeek Moment” was not just about open weights or impressive reasoning benchmarks. It was about economics. An unknown Chinese startup with frontier‑level capability apparently did not need to rely on US infrastructure.

Eighteen months on, DeepSeek’s latest pricing moves raise a serious question: are we on the cusp of a second DeepSeek moment, this time driven primarily by cost?

DeepSeek V4 Pro's benchmarks put it in the same bracket as Anthropic’s Claude Opus 4.7, OpenAI’s latest GPT 5.5 and Google’s Gemini 3.1 Pro line, with roughly comparable results across coding, reasoning, and general intelligence.

Yet its pricing is dramatically lower. DeepSeek V4 Pro is priced at roughly $1.74 per million input tokens and $3.48 per million output tokens, before discounts - already a fraction of what rivals charge for equivalent models. That gap is currently even wider with DeepSeek offering 75% off API pricing until 5th May.

For comparison, Claude Opus 4.7 is priced at around $5 per million input tokens and $25 per million output tokens, GPT 5.5 is $5/$30 and Gemini 3.1 Pro comes in at $2/$12. Even without discounts, DeepSeek massively undercuts its rivals.

The contrast highlights a widening divide in the AI market. US‑based AI startups are widely reported to be losing large sums on inference, propped up by venture capital and cloud credits rather than sustainable margins. As a result, they have limited room to cut prices, and are instead capping token usage or throttling heavy users. Cheaper tokens simply translate into greater losses for companies already under pressure from investors to show a path to profitability.

DeepSeek’s position (and to an extent that of other open models such as Kimi and GLM) is different. Its open‑model strategy, access to lower‑cost infrastructure, and willingness to trade margin for adoption allow it to use pricing to its advantage.

Just as the first DeepSeek moment forced the industry to reconsider assumptions about openness and performance, this second phase challenges assumptions about who can afford to compete at the frontier.

Australia

• Australia is considering a 2% levy on big tech companies unless they reach agreements with local news publishers, aiming to support domestic journalism. Source
• Gelatissimo, a popular Australian ice-cream franchise, has reportedly suffered a cyberattack, with threat actors claiming to have stolen sensitive data. Source

China

• DeepSeek has slashed prices for its latest AI model, aiming to compete more aggressively in the crowded Chinese AI market. Source
• DeepSeek’s new AI model failed to impress investors with open-weights competitors such as Kimi and Qwen narrowing the gap. Source
• China has warned the European Union of broad retaliation if Huawei and ZTE are banned from European networks, escalating tensions over technology and trade. Source
• Huawei anticipates its AI chip revenue will rise by at least 60% this year, driven by strong demand and expansion in the domestic market. Source
• China’s National Supercomputing Centre has announced plans to build a CPU-powered machine capable of two exaflops. Source
• Nvidia chip prices in China have surged due to a supply shortage demonstrating the toll that US restrictions on semiconductor shipments to China have had. Source
• China has launched a campaign to curb AI misuse, targeting fraudulent and harmful applications amid growing concerns about generative technology. Source
• Xu Zewei, an alleged contract hacker for China’s Ministry of State Security, has been extradited to the US from Italy to face charges related to cyberespionage targeting Covid-19 research and exploiting Microsoft Exchange vulnerabilities. Source
• China has blocked the acquisition of AI startup Manus by Meta, citing concerns over technology transfer and national security. Source
• Chinese tech startups are facing increased uncertainty after Beijing blocked the sale of Manus, Semafor reports. Source
• China has pledged to accelerate self-reliance in energy and technology, with new government policies aimed at reducing dependence on foreign imports and boosting domestic innovation. Source
• US and Chinese authorities have cooperated in a rare joint raid on a scam centre, highlighting cross-border efforts to tackle cybercrime. Source

India

• Apple is contesting the authority of India’s Competition Commission (CCI) in an escalating antitrust dispute. Source
• India is negotiating with the US and Anthropic for access to the Mythos AI platform, but no Indian companies have reportedly joined Project Glasswing yet. Source
• Shares of HCL Technologies and Infosys have dropped up to 17% in one week, hitting 52-week lows amid broader concerns in India's IT sector. Source
• TCS has signed new memoranda of understanding with Siemens Energy to advance digital infrastructure, aiming to strengthen collaboration in energy technology and digital solutions. Source
• Snabbit, an Indian fintech startup, is seeking new funding at a $400 million valuation, reflecting continued investor interest in the country’s digital finance sector. Source
• Google Wallet now allows Indian users to store Aadhaar as a digital ID, enabling identity verification without a physical card or government portal login. Source
• Meta has begun instantly blocking content in India, bowing to government pressure and stricter moderation expectations. Source

Japan

• IQM Quantum Computers will deploy Japan’s first enterprise quantum computer at Toyo, a milestone for commercial quantum technology in the country. Source
• Japanese airports are trialling humanoid robots as baggage handlers. Source
• Tokyo Electron’s close relationship with TSMC is under threat after a chip technology leak. Source

Malaysia

• AirTrunk is set to develop 280MW of data centre capacity in Johor, Malaysia, expanding its regional footprint and supporting growing demand for digital infrastructure. Source
• Huawei has chosen Malaysia for its largest AI initiative outside China, with the government offering support. Source

Singapore

• Singapore’s policy of AI neutrality is coming under strain as US and China exert increasing pressure, raising questions about the city-state’s ability to maintain its independent stance in global technology competition. Source
• The Association of Banks in Singapore is monitoring potential threats posed by advanced AI models, as financial institutions assess risks from emerging technologies. Source

South Korea

• Korean lawmakers have criticised US pressure regarding the government’s ongoing probe into retailer Coupang, which suffered a massive data breach. Source
• Samsung’s phone division may post its first-ever loss, signalling challenges in the global smartphone market and increased competition. Source
• Google plans to build an AI campus in South Korea, according to the presidential office, marking a significant investment in the country’s tech ecosystem. Source
• A strike at Samsung’s factory may lead to higher prices for DRAM and NAND memory chips. Source
• SK Hynix has begun mass production of 192GB AI server memory. Source

Taiwan

• Siemens and TSMC are expanding their collaboration on AI-driven chip design, building on an existing partnership with a focus on accelerating advanced node development. Source
• TSMC has outlined its SOIC chip stacking roadmap through 2029, aiming to advance semiconductor integration and performance. Source
• A Taiwanese court has sentenced individuals to up to 10 years in prison for stealing TSMC’s trade secrets. Source

Elsewhere in Asia

• Indonesia: Wikimedia has reached a compromise with Indonesian authorities to avoid a threatened blackout, ensuring continued access to its platforms in the country. Source
• North Korea: North Korean threat actors are using AI-generated npm malware and fake firms in a new wave of cyberattacks, targeting sensitive credentials and IT environments. Source
• Sri Lanka: Sri Lanka’s finance ministry has disclosed another missing payment just days after hackers stole $2.5 million. Source
• Asia: Edtech funding has collapsed across the region, with K12 startups struggling and a shift towards AI-driven workforce solutions. Source