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AI inference

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Forensic investigation into DeepSeek’s unit economics: why no Western cloud could match the pre-August $0.28 price, why DeepSeek temporarily hiked rates on August 16 after an 8-trillion-token surge, how V4.1-Flash’s 890-byte CED attention enables Western startups to hit $0.66 profitably today, and why American Big Tech hyperscalers charge a 4,000% markup to service legacy debt.

Within eight days in early September 2026, DeepSeek-V4.1-Flash and Gemini 3.8 Flash toppled previous-generation $90/M-token flagship models on DeepSWE v1.1. Here is the forensic engineering breakdown: 890-byte KV cache, CED topology, RLVR benchmaxxing, and real-world agent TCO.