Credit: CFP
AsianFin -- Chinese artificial intelligence startup DeepSeek has quietly rolled out an upgrade to its flagship R1 model, the reasoning-focused AI system that made global headlines earlier this year and positioned the Hangzhou-based firm as a rising force in the generative AI race.
The company announced the "minor trial upgrade" in an official WeChat group on Wednesday, inviting users to begin testing the new version. While it did not disclose technical details, the move signals DeepSeek's ongoing efforts to maintain momentum following its disruptive debut. The company did not respond to requests for comment.
DeepSeek stunned the global AI community in January when it unveiled R1, a model that claimed superior performance on standardized benchmarks compared to leading Western systems—at a development cost of just a few million dollars. The release challenged assumptions around the steep capital requirements of foundation models and prompted a wave of competitive activity from Chinese tech giants including Alibaba and Zhipu AI.
"The fast pace of model releases and updates since the release of DeepSeek R1 has resulted in some ‘model fatigue' among investors," said Gary Tan, portfolio manager at Allspring Global Investments. "Until there is a breakthrough in the model, investors are turning their focus on which internet companies can integrate AI into their operations and create a killer application."
The unveiling of R1 elevated DeepSeek founder Liang Wenfeng to national prominence. In February, he was invited by President Xi Jinping to a high-profile business summit alongside industry titans such as Alibaba's Jack Ma and Tencent's Pony Ma, highlighting the strategic importance China places on homegrown AI innovation.
DeepSeek's announcement came just hours before Nvidia, the dominant U.S. supplier of AI chips, reported quarterly earnings. Nvidia's shares were briefly rattled by R1's release earlier this year, but have since rebounded amid sustained demand for AI infrastructure. The chipmaker issued an upbeat forecast, reinforcing market confidence in continued AI-related spending.
While DeepSeek has yet to prove its commercial viability at scale, its rapid emergence underscores China's ambitions to close the gap with Silicon Valley in the global AI race—and the rising stakes for investors betting on the next breakthrough platform.
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