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DeepSeek fuels affordable AI, sparking cloud price wars in China and beyond

China’s cloud service providers (CSPs) have been engaged in fierce price competition since 2024, deploying aggressive cost-cutting strategies to expand market share. This battle is set to intensify in 2025 as major CSPs integrate the low-cost DeepSeek AI model, which blends artificial intelligence (AI) with open-source frameworks on cloud computing platforms. The ongoing price war is expected to drive service fees even lower.