I obviously don't know the full economics of the Chinese-hosted models, but estimates[1] put the cost of hardware (servers + networking) at 70-80% of the total cost. Those things aren't meaningfully cheaper in China, so serving DeepSeek at 1/3 the cost of the cheapest US provider doesn't really compute unless it's heavily subsidized or we believe that Chinese engineers are just that much better at optimization.

Edge models, yes, they can be convenient to run batch jobs locally. I still would argue there's no economic benefit over paying for models. Haiku has a bad price/perf but others in that class are significantly cheaper in hosted APIs.

Doesn't matter what I think, the reality is that the majority of enterprises (where the real $ comes from) will not consider sending their data to China.

1. https://epoch.ai/data-insights/ai-datacenter-cost-breakdown