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DeepSeek Unveils Update to R1 Model as AI Race Heats Up

DeepSeek Unveils Update to R1 Model as AI Race Heats Up

The debut of DeepSeek's R1 model set off a race to launch additional AI models in China.

By Luz Ding, Bloomberg News | Updated: 28 May 2025 21:06 IST

DeepSeek Unveils Update to R1 Model as AI Race Heats Up

Photo Credit: Reuters

DeepSeek completed what it described as a “minor trial upgrade” of R1

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Highlights

R1 outperformed Western players on several standardised metrics
R1's had triggered a rout in global tech stocks
DeepSeek is based in China's Hangzhou

DeepSeek said it has upgraded the R1 artificial-intelligence model that helped propel the Chinese startup to global prominence earlier this year.

DeepSeek completed what it described as a “minor trial upgrade” and told users they can start testing it, according to a company representative's post in an official WeChat group on Wednesday.

The Hangzhou-based startup stunned the global tech industry in January when it unveiled R1, an AI model that outperformed Western players on several standardized metrics, purportedly at a cost of just several million dollars. That triggered a rout in global tech stocks as investors questioned whether leading firms would still need to spend significant amounts to build AI services.

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The debut of R1 also set off a race to launch additional AI models in China. Founder Liang Wenfeng became a symbol of the country's ability to compete with the best of Silicon Valley.