U.S. companies flock to cheaper AI as costs soar

U.S. companies have spent over $1 trillion on AI, but model costs keep rising without expected savings. A report from Ramp shows Chinese AI firm DeepSeek topped its software trend list as the fastest-growing supplier.

One company paid $500 million for Claude in a month, Uber used up its yearly token budget in four months, and giants like Amazon and Microsoft are cutting AI tool subscriptions. DeepSeek cut API prices by 75%, and MiniMax pushed costs even lower, making value a key weapon for Chinese AI in global B2B markets.

Ramp's chief economist says this is a clear sign U.S. firms are seeking cheaper alternatives to OpenAI and Anthropic. Some are already using DeepSeek's hosted services directly.