China's AI price war is entering a new phase

A Bank of America report published Thursday says China's AI price war is moving beyond blanket token price cuts as companies increasingly compete on the cost of getting AI systems to complete tasks. The shift follows aggressive price cuts after low-cost Chinese AI models such as DeepSeek intensified competition across the industry. BofA analysts led by Winnie Wu said China's LLM price war is evolving from blanket cuts to tiered pricing. US export controls have accelerated China's AI push, fuelling fiercer domestic competition.

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