How DeepSeek’s Latest Update Poses a Significant Challenge to OpenAI and Google

Chinese AI startup DeepSeek is making waves in the global AI landscape with its new model, DeepSeek-R1-0528. This version significantly enhances complex reasoning, coding, and logic capabilities, rivaling advanced models like OpenAI’s GPT-4o and Google’s Gemini. In recent benchmark evaluations, it achieved an impressive 87.5% accuracy on the AIME 2025 test, an increase from 70%, and improved its performance on coding benchmarks as well. Unlike proprietary models from competitors, DeepSeek adopts an open-source approach under the MIT License, facilitating easier access for developers and startups. The model, trained efficiently in just 55 days with a lower cost compared to U.S. standards, underscores DeepSeek’s commitment to resource-efficient AI development. Overall, DeepSeek’s innovative and accessible strategies are positioning it as a formidable contender in the evolving AI industry, potentially reshaping who controls and benefits from AI technology.

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