price-war

DeepSeek's peak/off-peak billing takes effect today, with V4-Pro output up 4.5x at peak and cache-hit input up as much as 12x a fortnight after OpenAI cut Luna 80%, evidence that the price war is convergence toward the true marginal cost of intelligence, not a race to zero.

OpenAI cut GPT-5.6 Luna by 80% three weeks after launch, saying Sol rewriting its own production kernels funded the cut, which makes the real story less a blink at China than a model becoming a line item on both sides of its own P&L.