Chinese AI startup DeepSeek has introduced discounted off-peak pricing for its AI models, offering developers up to 75% lower costs during specific hours. 

The move, announced on Wednesday, is set to intensify competition in the global AI industry, putting pressure on rivals in China and overseas to reconsider their pricing strategies.  

The Hangzhou-based company's new pricing plan applies to its R1 and V3 AI models, which developers can access via its application programming interface (API). During the off-peak hours of 12:30 am to 8:30 am Beijing time (10:30 pm to 6:30 am Bangladesh time), the cost of using the R1 model will drop by 75%, while the V3 model will be 50% cheaper. 

To note, this timing also coincides with daytime in Europe and the US. This pricing strategy aims to optimise resource usage and attract developers looking for affordable yet powerful AI tools, suggests a Reuters report. 

DeepSeek's low-cost models have already disrupted the AI market, as per Reuters. Last month, the company's announcement of its R1 model triggered a sell-off in global tech stocks, as investors worried about its potential to challenge established players like OpenAI and Google. Since then, OpenAI has cut prices for its ChatGPT API, and Google has introduced discounted tiers for its Gemini AI model.  

The startup's rise has been rapid. Known for its open-source approach and competitive pricing, DeepSeek sparked a price war in China last May with the release of its V2 model. Its latest models, R1 and V3, have gained global attention for their affordability and performance, with the company now accelerating the development of a successor to the R1.