DeepSeek V4 pricing reality check: 178x cheaper cached tokens vs Opus, but capability lag acknowledged

DeepSeek V4 launched with pricing so low a Reddit user checked the math. Here are the verified numbers:
Pricing breakdown
- V4-Pro standard input: $0.145 per million tokens. Opus 4.7 input: ~$5 per million. Ratio: 34x.
- With 75% promotional discount (through end of May): V4-Pro input drops to $0.036 per million — 138x cheaper than Opus.
- Cache hit pricing: V4-Pro is $0.0036 per million. Opus cached is $0.625 per million. Ratio: 173x.
The catch
As the original post notes, DeepSeek admits V4 is three to six months behind GPT-5.4 and Gemini 3.1 Pro on capability. You're not getting frontier quality at frontier-divided-by-178 — you're getting last summer's frontier quality.
What this means for agentic workflows
For agentic loops with heavy caching (system prompts, tool definitions), the cache hit discount is the real story. Reusable system prompts become essentially free. The key unknown: whether the claimed 1M context window holds up under real workloads or degrades to a usable 200K, as seen with many large-window models.
📖 Read the full source: r/LocalLLaMA
👀 See Also

Claude Opus 4.7 Model Card Released
Anthropic has published the Claude Opus 4.7 model card, providing technical documentation for their latest AI model. The source material appears to be a PDF document containing system specifications and technical details.

Anthropic Report Details Mass Distillation of Claude by Chinese AI Firms
Anthropic published evidence that DeepSeek, Moonshot AI, and MiniMax used 24,000 fake accounts and over 16 million exchanges to distill Claude's capabilities, compromising safety mechanisms in the copied models.

Claude Code v2.1.147: Pinned Sessions, /code-review, and Dozens of Fixes
Claude Code v2.1.147 introduces pinned background sessions, renames /simplify to /code-review with effort levels and --comment, plus fixes for PowerShell, MCP, Windows, and more.

Allbirds pivots from footwear to AI infrastructure, shares surge 580%
Shoe brand Allbirds announced a $50 million deal to become an AI compute infrastructure business called NewBird AI, causing its shares to rise 580%. The company plans to buy GPUs and offer on-demand graphics chips and cloud services for AI.