DeepSeek cut prices 75%. The 100x problem remains

DeepSeek cut pricing on its V4-Pro model by 75%, but the article argues that cheaper inference does not automatically improve AI vendors’ margins. Agent systems can turn one user request into many planning, retrieval, tool-use, and verification calls, creating a 100x problem where token usage rises faster than model prices fall.

The economics of AI software are diverging from traditional cloud software, where falling infrastructure costs usually expanded margins over time. As companies shift from chatbots to agentic workflows, cost control will depend less on model price cuts and more on architecture, orchestration, caching, and product design.