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Is Deepseek just eating cost or are people able to host their open models for comparable costs?
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If openrouter is to be trusted, the cheapest offers that are not from Deepseek itself are:

- twice as expensive on the output (1.52 vs 0.87)

- six times as expensive on the input (0.33 vs 0.05)

https://openrouter.ai/deepseek/deepseek-v4-pro?sort=price#pr...

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Other people are hosting it in the same order of magnitude. Xioami recently matched DeepSeek’s pricing.
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These things enormously benefit from economies of scale. I am fairly certain their margins might be low but they don't actually sell API at loss, however that doesn't mean your cost footprint would be anywhere as low.
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They focused on caching and other optimizations.
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Likely CCP-subsidized
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DeepSeek v4 Pro is not actually that good a model compared to GLM 5.1 and Kimi K2.6. It's an okay coder/thinker for the price.
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How so? In my experience trying these models using opencode Go, DeepSeek is superior to GLM 5.1.

If anything, DS4 has 1 million context window, while GLM 5.1 has 200K.

There are also benchmarks comparing the two: https://artificialanalysis.ai/models/comparisons/deepseek-v4...

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