Prices are not going up. DeepSeek V4 Pro is 5-10x cheaper than Claude 4.7.

As some of us have been predicting, model capability had already mostly plateaued, and the Chinese have and will continue to relentlessly push cost down. Chinese models will be used for 95% of things, with nation-native models for security/sovereignity-sensitive workloads. Eventually (5+ years from now), efficiency gains and hardware progress will make running local models the dominant way of doing things.

And yes, that puts the investors of Claude and OpenAI in quite a pickle.