Enterprise markup rates, as a crucial indicator for assessing corporate pricing power and profit margins, hold significant importance in mitigating the “involutionary competition” dilemma among enterprises and facilitating the smooth functioning of the domestic economic cycle. Based on data from A-share listed companies from 2013 to 2023, this paper empirically examines the impact of computing power deployment on enterprise markup rates. The study finds that: First, computing power deployment significantly enhances enterprise markup rates, alleviating “price-cutting involution”. This effect is achieved by overcoming the middle-technology trap and resolving the overcapacity trap. The former is realized by increasing the proportion of skilled technical personnel and achieving core technological innovations, while the latter is manifested through the elimination of outdated production capacity and the reduction of supply-demand mismatches. Second, the impact primarily benefits small and medium-sized enterprises and technology-leading enterprises, further reducing cost-sharing pressures along the supply chain and alleviating “chain-wide involution”. Third, this positive effect is more pronounced in regions with stronger intellectual property protection and greater government participation. Fourth, the increase in enterprise markup rates subsequently drives up the labor income share and corporate tax burdens, yielding positive implications for social welfare. This paper, with markup rates as its core observational indicator, elucidates the role of computing power deployment in mitigating “involutionary competition” and bolstering the momentum of the domestic economic cycle from three dimensions: micro-level enterprise operations, meso-level industrial upgrading, and macro-level economic welfare.