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DeepSeek's New V3.1 Hints at Potent New Chinese Chips

DeepSeek's AI model upgrade supports next-generation domestic chips with a hybrid inference structure and will lower API costs from September 6, promoting wider adoption across sectors.

  • On August 21, 2025, in Beijing, Chinese AI startup DeepSeek launched V3.1, a new iteration of its leading AI model.
  • The upgrade addresses U.S. semiconductor export restrictions by optimizing the model for soon-to-be-released Chinese-made chips to reduce reliance on foreign technology.
  • DeepSeek V3.1 features faster processing speeds, enhanced reasoning and non-reasoning capabilities via a hybrid inference structure, and supports an expanded context window of 131,072 tokens.
  • The company reported that V3.1 scored 30 on the Browsecomp benchmark, a notable improvement over the May R1 update's 8.9, and emphasized enhancements in its ability to utilize external tools and execute function calls, which are essential for agentic AI tasks.
  • DeepSeek plans to reduce API pricing from September 6 to improve developer access, signaling a push for wider adoption and positioning as a competitive global AI provider.
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After months of silence Deepseek presents a new model. But even in the People's Republic, the reaction is initially subdued.

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El Economista broke the news in on Thursday, August 21, 2025.
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