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DeepSeek likely to release next-generation R2 model before May

DeepSeek wants to emphasize its benefits.

Last month, the Chinese startup’s low-cost AI reasoning model surpassed several of its Western rivals, causing a sell-off in global equity markets worth over $1 trillion.

According to three sources with knowledge of the company, the Hangzhou-based company is now speeding up the release of the R1 model’s replacement from January.

Without giving any details, two of them stated that Deepseek now wants R2 out as soon as possible, when the company had originally intended to release it in early May.

According to the corporation, the new paradigm should result in improved code and the ability to reason in languages other than English. There have been no prior reports on the specifics of the faster release schedule for R2.

A request for comment for this story was not answered by DeepSeek.

The ramifications of R1, which was constructed using less potent Nvidia chips but is competing with those created at hundreds of billions of dollars by American tech companies, are still being processed by rivals.

“The launch of DeepSeek’s R2 model could be a pivotal moment in the AI industry,” said Vijayasimha Alilughatta, chief operating officer of Indian tech services provider Zensar. DeepSeek’s success at creating cost-effective AI models “would likely spur companies worldwide to accelerate their own efforts … breaking the stranglehold of the few dominant players in the field,” he said.

The U.S. government, which has made leadership of AI a national goal, is probably concerned about R2. Chinese authorities and businesses, many of which claim to have begun using DeepSeek models into their goods, may be further energized by its publication.

The creator of DeepSeek, Liang Wenfeng, earned a fortune through his quantitative hedge fund, High-Flyer, yet nothing is known about the company. A former employer characterized Liang as “low-key and introverted,” and since July 2024, Liang has avoided media interviews.

Twelve former workers and quant fund experts with knowledge of DeepSeek’s and its parent company High-Flyer’s operations were interviewed by media. Additionally, it examined academic papers from as early as 2019, state media stories, and company social media postings.

They described a business that operated more like a research lab than a for-profit firm, free from the hierarchical customs of China’s high-pressure tech sector, while being the driving force behind what many investors believe to be the most recent advancement in artificial intelligence.

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