AI is killing the cheap smartphone — 2026-05-24

## Short Segments DeepSeek's permanent 75% price cut on its AI model V4 Pro intensifies the AI price war, undercutting major competitors like GPT-5. Moment, a fintech startup founded by former Citadel quants, raises $78 million to expand its AI operating system for wealth management. Stellantis plans to build Chinese electric vehicles in Canada and Mexico, but not in the U.S. Coming up, we'll explore how AI's demand for memory is reshaping the smartphone market. DeepSeek has permanently slashed prices on its V4 Pro AI model by 75%, a move that escalates the competitive landscape in the AI industry. The Chinese startup's pricing now ranges from $0.003625 to $0.87 per million tokens, significantly undercutting rivals like OpenAI's GPT-5. This aggressive pricing strategy is set to intensify competition among AI providers, potentially driving down costs across the board. For developers and businesses, this means more affordable access to advanced AI capabilities, potentially accelerating innovation and adoption in various sectors. As the AI price war heats up, the industry could see a shift in market dynamics, with cost becoming a critical factor in AI adoption decisions. Former Citadel quants have raised $78 million for their AI operating system, Moment, aimed at wealth management firms. The funding round, led by Index Ventures, highlights the growing interest in AI-driven financial solutions. Moment's platform allows wealth management firms to deploy AI agents, enhancing their investment strategies and operational efficiency. With clients like Edward Jones and LPL Financial, Moment is positioned to become a key player in the financial technology landscape. This investment underscores the increasing reliance on AI to optimize financial services, potentially transforming how wealth management firms operate and compete. Stellantis plans to produce Chinese electric vehicles in Canada and Mexico, but not in the U.S., citing a lack of market space. The automaker sees opportunities to expand its partnerships with Chinese company Zhejiang Leapmotor Technology Co. in North America, excluding the U.S. This strategic move reflects Stellantis' focus on leveraging international collaborations to enhance its EV offerings and market reach. For the North American market, this could mean increased availability of diverse EV options, potentially influencing consumer choices and regional market dynamics. As Stellantis navigates its production strategy, the decision to bypass the U.S. market may have implications for its competitive positioning in the EV sector. ## Feature Story AI's growing demand for memory is reshaping the smartphone market, redirecting resources from budget phones to data centers. Memory manufacturers are prioritizing AI chips over smartphone components, causing a 250% surge in LPDDR prices. This shift has led to a significant decline in the sub-$100 smartphone market, with shipments predicted to drop by nearly 13% this year. As AI applications expand, the demand for high-performance memory in data centers is outpacing the needs of the smartphone industry. This trend is causing a ripple effect, making budget smartphones less economically viable and potentially altering consumer access to affordable technology. Analysts warn that this "RAMageddon" could permanently impact the availability of low-cost smartphones, as manufacturers struggle to balance the competing demands of AI and mobile technology. For consumers, this means fewer options in the budget smartphone segment, potentially widening the digital divide as affordable devices become scarce. As the tech industry adapts to these changes, the focus may shift towards developing new solutions to meet the growing memory demands of AI without sacrificing the accessibility of mobile technology. In the coming months, the industry will need to address these challenges to ensure that technological advancements benefit a broad range of users.