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OpenAI vs DeepSeek: Token Pricing, Speed & Intelligence

Full comparison of OpenAI and DeepSeek — live token pricing, latency, throughput, context window, strengths, weaknesses, and best use cases. Updated July 2026.

OpenAI

GPT-4o, o3, and the world's most widely-used AI API

OpenAI is the creator of the GPT model family and the ChatGPT product. Their API provides access to frontier models including GPT-4o, the o-series reasoning models, and the GPT-4.1 long-context family. Pricing is competitive for frontier-tier capability, with prompt caching available on most models.

CodingChatVisionReasoningAgents
Proprietary models

DeepSeek

Chinese frontier lab — DeepSeek V3 and R1 at remarkably low prices

DeepSeek is a Chinese AI lab that has released highly capable open-weight models at prices far below Western competitors. DeepSeek V3 matches GPT-4 class performance at $0.27/1M input tokens, while DeepSeek R1 is a reasoning model competitive with o1 at a fraction of the cost. Both models are open-weight.

Cost-efficiencyReasoningCodingOpen-sourceSelf-hosting
Proprietary models

Key metrics

Cheapest input ($/1M)

Cheapest output ($/1M)

Peak throughput

Best latency (TTFT)

Intelligence score

Context window

Live token pricing

Strengths & weaknesses

OpenAI

Largest ecosystem & third-party integrations
Best-in-class function calling & structured outputs
Prompt caching on all major models
o3/o4-mini reasoning models for complex tasks
1M+ token context on GPT-4.1
No open-weight models — full vendor lock-in
Output pricing is among the highest for frontier tier
Rate limits can be restrictive on lower tiers

DeepSeek

DeepSeek V3 matches GPT-4 class at $0.27/1M input — 10× cheaper
R1 reasoning model competitive with o1 at a fraction of the cost
Both V3 and R1 are open-weight — can be self-hosted
Mixture-of-Experts architecture for efficient inference
Strong coding and math benchmarks
Data residency in China — may not meet compliance requirements
API reliability can lag Western providers during peak demand
Limited multimodal capability vs. Gemini or GPT-4o

Key differentiators

OpenAI

The most widely-integrated LLM API — virtually every AI framework and tool supports OpenAI natively.

DeepSeek

DeepSeek V3 delivers GPT-4 class intelligence at $0.27/1M input tokens — the most disruptive price-to-performance ratio in the LLM market.

Frequently asked questions

OpenAI FAQs

How much does the OpenAI API cost?

GPT-4o costs $2.50/1M input tokens and $10/1M output tokens. GPT-4o-mini is $0.15/$0.60 per 1M tokens. Prompt caching cuts input costs by 50% on eligible requests.

What is the difference between GPT-4o and o3?

GPT-4o is a fast, multimodal model optimised for chat, vision, and coding. o3 is a reasoning model that uses chain-of-thought to solve complex problems — it is slower and more expensive but significantly more capable on math, science, and hard coding tasks.

Does OpenAI support prompt caching?

Yes. Prompt caching is available on GPT-4o, GPT-4.1, o3, and o4-mini. Cached input tokens are billed at 50% of the standard input price, making long-context and repeated-system-prompt workloads significantly cheaper.

DeepSeek FAQs

How much does DeepSeek cost?

DeepSeek V3 costs $0.27/1M input and $1.10/1M output tokens — roughly 10× cheaper than GPT-4o for comparable capability. DeepSeek R1 is $0.55/1M input and $2.19/1M output.

Is DeepSeek open-weight?

Yes. Both DeepSeek V3 and DeepSeek R1 are open-weight models available on Hugging Face. You can self-host them on your own GPU infrastructure, though they require significant compute (671B parameters for R1).

How does DeepSeek R1 compare to OpenAI o1?

DeepSeek R1 scores comparably to OpenAI o1 on math and coding benchmarks at a fraction of the cost. R1 is open-weight and can be self-hosted, while o1 is proprietary. R1 is available via multiple inference providers including Fireworks AI and Together AI.

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