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> how/why are they lowering the prices so much

Like I responded to someone else:

- Cheap electricity - Cheap, domestically produced GPUs - Efficiency research. (a lot of it from Deepseek's research)

Also, the Chinese government wants the AI to be as accessible as EVs so everyone will use it.

Also if this is on the path of anything the Chinese do in the physical goods world, inference will be rockbottom cheap in a few years because they'll invest in the hell out of energy, GPUs, research, etc. The same thing they did with EVs.

Only artificial barriers will keep people using some of the frontier stuff in a couple of years. No costs will justify.

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