Deepseek is showing that in order to lead in AI, it’s not all about computational power and efficiency, the burning question now is who can create the best AI for the cheapest price. This is turning the AI world upside down and restructuring how AI leaders build their latest tools.
To understand how this shift will shape AI model releases in the U.S. in 2025, we spoke with Sanjay Basu, Senior Director of GPU & Gen AI Solutions & Services at a Fortune 100 cloud provider.
Price Battles: "The AI arms race isn’t just about who builds the biggest, smartest model anymore—it’s also about who can deliver the best bang for the buck. As we head into 2025, we’re going to see AI model releases in the U.S. shaped by two competing forces: performance and cost," Basu explains.
While tech giants like OpenAI and Google DeepMind push the boundaries with frontier models such as GPT-5, emerging players like DeepSeek and Mistral are proving that smaller models can still deliver impressive reasoning capabilities without the hefty infrastructure demands. This price-performance dynamic is set to redefine priorities for AI development.
