The rest is mostly hardware depreciation.
The real reason: anthropic + openai just cut the reasoning output to prevent distill, and hence you see the rise of chinese models to establish contracts globally .
how will that help them working around the distill issue?
>API Services . If you use the API services, we will collect your IP address and the content (text, audio, video, picture) you submit to analyze the relevant instructions based on the model you select and to generate the returned content. Xiaomi will not use the content you provide for model training or any other purposes.
This has been the strategy for months now
Input (Cache Hit) Input (Cache Miss) Output mimo-v2.5-pro $0.0036 $0.435 $0.87
mimo-v2.5 $0.0028 $0.14 $0.28
Deepseek V4 Flash: $0.0028, $0.14, $0.28
Deepseek V4 Pro: $0.145, $1.74, $3.48
GPT 5.5: $0.5, $5, 430
GPT 5.5 Pro: $0.5, $30, $180
Claude Sonnet 4.6: $0.30, $3, $15
Claude 4.7 Opus: $0.5, $5, $25
1. Dump product to corner the market
2. Kill competition
3. Raise prices, enshitify things
4. Profit
The frontier models are going to need to REALLY up their game if they can justify $200/mo for pretty awful experiences.