Cheaper and more available models increase total consumption of intelligence rather than displacing it, and the volume creates economies of scale.

6 source(s) assert this claim, 1 deny it.

Who asserts it

And so with the right harness uh Nvidia Neimotron is extraordinarily good and you could adapt it customize it uh for the certain skills that you have in mind and it can be completely world class. What are the economics for the proprietary labs if open-source models not just Chinese ones can produce tokens the intelligence cheaper? Fantastic. Um really really what the what the world needs is more people who needs AI. And the the only way that you need AI uh is because you tried it and you realize you want better ones.

Jensen Huang: 'AI Doomers Have It Wrong' — Axios Interview Full Transcript — 2026-07-23

So this Chinese competition is coming fast and furious. What should US AI companies do? these China Chinese models are excellent uh open open- source models that are excellent should be used and so the markets misunderstood the impact of deepseek the first time it's misunderstood Chinese >> yeah it's it's misunderstood the impact of Kimmy again this time I think first of all with great AI open models it's great for the whole industry obviously when there's more if there's great AI even if it's open uh wherever it comes from there will be more use.

Jensen Huang: 'AI Doomers Have It Wrong' — Axios Interview Full Transcript — 2026-07-23

>> of cost it comes in a couple of of different ways. I happen to think that different ways. I happen to think that that when you have cost-effective that when you have cost-effective intelligence, people just use more of it. When you have a cost-effective it. When you have a cost-effective agent, then you can iterate across a larger search space. larger search space. And as a result, the answer could actually be better. actually be better. And in the case of Nemotron, it's cost-effective because it's so fast. It's so computationally efficient.

Jensen Huang: Why Companies Need Open Agent Systems — LangChain Interview Full Transcript — 2026-07-08

Who denies it

I just said why we don’t keep cutting prices—it’s because it’s inelastic. That is, if I cut prices further, demand won’t increase more, or if I cut prices further, demand increases very little. Because at this price everyone can already afford it, everyone feels this price is satisfactory, and won’t stop using it because the price is expensive.

DeepSeek's Liang Wenfeng Breaks His Silence — 2026-07-23

So cutting prices—first, the company won’t have more revenue; for society there’s no more value either, because everyone is already satisfied with this price. Even if you lower the price further, it won’t increase society’s sense of happiness much. Right, OK, but on this issue just now, on this matter of pricing, we’re definitely not...

DeepSeek's Liang Wenfeng Breaks His Silence — 2026-07-23

This is our standard. It’s actually not profit-maximizing—if it were profit-maximizing, we should set prices higher. Because in this price range, user demand is inelastic, meaning if I cut the price in half, or if I raise the price by double, the token consumption doesn’t differ much.

DeepSeek's Liang Wenfeng Breaks His Silence — 2026-07-23

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