China's AI price war is entering a new phase

China's AI price war is entering a new phase as companies compete on the cost of completing AI tasks. Long Wei/VCG/Getty Images China's AI price war is moving beyond blanket token price cuts, BofA says. Companies are increasingly competing on the cost of completing AI tasks, not processing tokens. US export controls accelerated China's AI push, fueling fiercer domestic competition. China's AI price war is moving beyond blanket token price cuts as companies increasingly compete on the cost of getting artificial intelligence systems to finish tasks, according to a Bank of America report published Thursday. The shift follows aggressive price cuts after low-cost Chinese AI models such as DeepSeek intensified competition across the industry. The economics are now changing, BofA said.