Companies are increasingly aware that transitioning to artificial intelligence (AI) is the way forward. However, some organisations have realised that new technology comes at a cost.
Anthropic is arguably one of the first companies that comes to mind when AI is mentioned. Its API and Pro subscriptions are competitively priced, although overall costs may rise depending on the number of users accessing the coding tool.
A look at the company's official website shows different Claude packages. The monthly subscription fee for the Pro package is $20, while the cost of using the Max bundle is $100 per month. When this figure is multiplied by the number of employees who would use it, the total cost becomes substantial.
As a result, it is hardly surprising that some companies are seeking alternatives. Microsoft AI CEO Mustafa Suleyman said that the cost of a Claude subscription is too high, according to a report by Bloomberg. If that's the perspective of a software giant, with a market capitalisation valued at approximately $3 trillion, it is reason enough for some companies to look at more cost-effective alternatives.
Ironically, these remarks came not long after Microsoft unveiled seven new MAI models at its Build conference. Suleyman claimed that Microsoft's new coding model offers the same capabilities as Anthropic's Opus 4.6 but at a lower price.
'We pay a lot of money to Anthropic—so our goal is to reduce and ultimately eliminate that cost,' the Microsoft executive said.
However, the question is whether Microsoft's lower price makes it the most cost-efficient AI option when it comes to coding. With reports suggesting that US companies are turning to Chinese models to save on costs, this may not be the case.
DeepSeek Rising to the Occasion
In a report by the South China Morning Post, the number of US-based companies turning to Chinese models and tools has been growing. This direction is understandable, especially with the costs associated with implementing AI technology today.
An identified company that US firms are dealing with is reportedly DeepSeek. Owned and funded by High-Flyer, a Chinese hedge fund, this has resulted in DeepSeek climbing the developer rankings. The company has a reported valuation of $60 billion, the SCMP post added.
'In probably the biggest sign that companies are looking for cheaper alternatives to OpenAI and Anthropic, some are willing to use cheaper Chinese models, sending US data back and forth from China-hosted servers,' Ara Kharazian, lead economist at Ramp Economics Lab, wrote in a social media post.
NEW: DeepSeek, the Chinese AI company, is one of the fastest growing vendors on Ramp.
— Ara Kharazian (@arakharazian) June 3, 2026
In probably the biggest sign that companies are looking for cheaper alternatives to OpenAI and Anthropic, some are willing to use cheaper, Chinese models, sending U.S. data back and forth from… pic.twitter.com/71nEkTlGkt
Flexibility Helping Spur Interest in DeepSeek
Beyond lower pricing, DeepSeek is also garnering attention for its flexibility of use. Its open-source approach allows companies to download, customise, and deploy models on their own infrastructure, reducing the need to rely on external providers.
This business philosophy has resulted in other Chinese companies following suit. Like DeepSeek, other firms have opted to release lighter models and charge clients less than typical US-based companies, according to TechRadar.
Beyond that, DeepSeek models were also fine-tuned to ensure they run on fewer resources while still offering sufficient training to help users get the most out of their AI solutions.
Given the sudden rise in popularity, Kharazian warned that while DeepSeek is trending at the moment, this is subject to change. With other platforms such as Fireworks AI, Fal AI, and DeepInfra drawing attention, interest could shift depending on the features each has to offer.
The only thing certain for now is that the high cost of integrating AI into business operations has led some US companies to explore more cost-friendly alternatives. The flexibility and ease of use of these AI platforms are also key considerations, suggesting companies want to ensure they receive the right value and returns on their AI investments.
