DeepSeek, the Chinese AI startup that recently caused a massive $1 trillion sell-off in global equity markets, is fast-tracking the release of the successor to its R1 AI model.
Sources close to the company report that the Hangzhou-based firm aims to launch the R2 model as soon as possible, advancing the timeline initially set for early May.
The current R1 model, built with weaker Nvidia chips, has already rivaled many of its Western competitors, while baffling even the leading U.S. tech giants
The upcoming R2 model is expected to improve on coding capabilities and introduce support for multiple languages beyond English.
DeepSeek has yet to comment on these developments.
The rapid success of DeepSeek could disrupt the AI sector, prompting other companies to intensify their AI model development efforts, and potentially ending the dominance of current market leaders. Vijayasimha Alilughatta of Indian tech firm Zensar describes the forthcoming R2 model as a potential game-changer within the industry.
As AI leadership remains a strategic focus for the U.S., the emergence of DeepSeek presents a new challenge. The firm’s endeavors seem to have gained notable support from the Chinese government, further bolstered by a meeting attended by DeepSeek’s founder, Liang Wenfeng, with Chinese Premier Li Qiang.
DeepSeek’s influence is increasingly being acknowledged across China, with numerous Chinese cities and state-owned enterprises integrating its models.
Major corporations like Lenovo, Baidu, and Tencent have also begun deploying R1 technology. This widespread adoption underscores China’s confidence that it can outpace U.S. innovation in the AI field.
While some countries, citing privacy concerns, have removed DeepSeek from national app stores, China’s endorsement speaks volumes about its broader technological ambitions.
AI expert Alfred Wu notes that President Xi Jinping and Premier Li have signaled their support for DeepSeek, catalyzing widespread adoption within China.
Stephen Wu of Carthage Capital suggests that the proliferation of DeepSeek in Chinese state applications might push Western nations to tighten restrictions on AI technology partnerships.
Despite these geopolitical tensions, DeepSeek founder Liang acknowledges that the primary obstacle to growth is not financial backing, but rather the embargo on acquiring advanced AI chips.
