Free DeepSeek with your beer? Beijing bar captures China’s AI boom

Beijing’s tech district, known as Zhongguancun, is experiencing a surge in artificial intelligence (AI) activity as Chinese rivals challenge US giants like OpenAI and Anthropic. An AI-themed bar, AGI Bar, capitalizes on this trend by offering free AI usage to customers. Bar owner Song De explained that instead of paying DeepSeek, a popular Chinese AI startup, for tokens, he can self-host the V4 Flash model using two Nvidia workstations.

This move allows him to bypass the high costs associated with the Chinese startup's model. The AI field is witnessing intense competition, with Chinese companies like DeepSeek and Xiang'an's Kimi K3 vying for market share against US players such as OpenAI and Anthropic. DeepSeek plans to increase its prices for programmers, but the bar provides a cost-effective alternative for users.

AI experts believe that cheaper, more efficient models like DeepSeek V4 Flash could drive innovation and spur the development of applications that run locally, reducing reliance on cloud-based services.