China's DeepSeek just dropped a new GPT-5 rival - optimized for Chinese chips, priced to undercut OpenAI
Briefly

DeepSeek built R1, an AI model that rivaled OpenAI and Anthropic's top LLMs while using far fewer Nvidia chips and lower cost, and released it for free. Two weeks after OpenAI launched GPT-5, DeepSeek released V3.1, which experts say matches GPT-5 on some benchmarks and is priced to undercut it. V3.1 was shared via a WeChat group and on Hugging Face. The model is tuned for Chinese-made chips and aligns with China's strategy to develop and control advanced AI without reliance on foreign technology. DeepSeek models are widely adopted in China and increasingly abroad, though researchers warn outputs often reflect Chinese Communist Party-approved narratives. OpenAI has expressed concern about rising competition from Chinese open-source models.
Chinese AI startup DeepSeek shocked the world in January with an AI model, called R1, that rivaled OpenAI and Anthropic's top LLMs. It was built at a fraction of the cost of those other models, using far fewer Nvidia chips, and was released for free. Now, just two weeks after OpenAI debuted its latest model, GPT-5, DeepSeek is back with an update to its flagship V3 model that experts say matches GPT-5 on some benchmarks-and is strategically priced to undercut it.
DeepSeek's new V3.1 model was quietly released in a message to one of its WeChat groups, China's all-in-one messaging and social app, as well as on the Hugging Face platform. Its debut touches several of today's biggest AI narratives at once. DeepSeek is a core part of China's broader push to develop, deploy, and control advanced AI systems without relying on foreign technology. (And in fact, DeepSeek's new V3 model is specifically tuned to do perform well on Chinese-made chips.)
While U.S. companies have been hesitant to embrace DeepSeek's models, they've been widely adopted in China and increasingly in other parts of the world. Even some American firms have built applications on DeepSeek's R1 reasoning model. At the same time, researchers warn that the models' outputs often hew closely to Chinese Communist Party-approved narratives - raising questions about their neutrality and trustworthiness.
Read at Fortune
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