Chinese AI startup DeepSeek has updated its AI model, DeepSeek V3. This latest version greatly improves its reasoning, coding, and problem-solving capabilities. The model was upgraded to V3-0324 on GitHub (GTLB). Also, its license was changed to an open-source license from the Massachusetts Institute of Technology, making it easily available to developers globally.
It must be noted that the V3 model has been improved using a 32k GPU system, making it much better at handling math and coding tasks. Early tests show it beats its previous version and rivals like OpenAI’s models, in several benchmarks. With 700 billion parameters, the model is powerful and is designed to work smoothly on regular computers.
DeepSeek’s AI Success amid Concerns
This update follows the success of DeepSeek’s earlier R1 model, which gained global attention for its strong performance. In January, the company’s app became more popular than ChatGPT on Apple’s (AAPL) U.S. app store, and its R1 model showed results similar to OpenAI’s offerings.
Apart from companies, DeepSeek’s AI is being used by China’s military in non-combat roles, like helping doctors in hospitals with treatment plans. This has raised discussions about its potential use in war planning and decision-making.
Despite its rapid rise, DeepSeek has faced many challenges. Server capacity issues have led DeepSeek to limit access to its API services. Also, its ties to the Chinese government have raised concerns in countries like the U.S.
Deepseek’s Next Moves
Looking ahead, the Chinese AI startup aims to launch DeepSeek-Vision, a multimodal AI system that combines text, image, and voice processing. Also, it seeks to reduce energy use by 40% through quantum-inspired algorithms and partnerships with Nvidia (NVDA) for green data centers.
Importantly, DeepSeek is looking to grow its presence in over 50 countries by 2028, boosting its role as a global AI leader.
Which AI Stock Is a Better Buy?
Turning to Wall Street, analysts think that NVDA and MU stocks have the most room to run. Meanwhile, analysts expect the least upside from AAPL stock. In fact, NVDA and MU’s price targets of $176.54 and $131.73, respectively, imply over 46% upside each versus AAPL’s 13%.