Conor O'Sullivan’s Post

Chinese DeepSeek AI released V4 Preview as an open-source model family with a claimed 1M-token context window. Long-context models are becoming dramatically cheaper and more widely distributed. OpenAI, Anthropic, and Google now face even more pricing pressure at the lower and mid tiers as they compete with a parallel AI stack emerging outside U.S. control. DeepSeek AI is not just a model competitor. It is a pressure mechanism on the entire Western AI margin structure. If good-enough long-context reasoning becomes cheap, application defensibility must come from workflow, data, and distribution. So anyone building the new rule of thumb is to use frontier models where judgement matters and use cheaper/open models for intake, extraction, classification, summarisation, and retrieval. https://lnkd.in/dDCyZ-Tb

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