Chinese AI Upstart DeepSeek Quietly Unleashes Upgraded Reasoning Model

May 29, 2025
CNBC
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Summary

Chinese AI startup DeepSeek quietly released an upgraded version of its reasoning model DeepSeek R1, outperforming rivals like Meta and OpenAI, shocking markets and sparking concerns about U.S. tech giants' spending, while showcasing China's AI capabilities despite U.S. export curbs.

Key Points

  • Chinese startup DeepSeek released an upgraded version of its reasoning AI model DeepSeek R1, outperforming offerings from rivals like Meta and OpenAI.
  • The low-cost and short development time of DeepSeek's AI models has shocked global markets and wiped billions off major U.S. tech stocks.
  • The upgraded DeepSeek R1 model shows improvements in reasoning, math, code abilities, and reduced hallucinations, signaling China's AI capabilities are catching up despite U.S. export restrictions.

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