Chinese artificial intelligence (AI) startup DeepSeek has created a buzz among AI enthusiasts with its release of an upgrade to its flagship model, namely DeepSeek-V3.1, on Thursday.

The company said the new model can run faster than the previous model and is optimized for Chinese-made chips.

The DeepSeek-V3.1 features a hybrid inference structure that enables the model to operate in both reasoning and non-reasoning modes, the company said in a WeChat post on Thursday.

Users can toggle between these modes using a "deep thinking" button on the company's official app and web platform, both of which now run the V3.1 version.

Positive reviews

The consensus from initial reviews is highly positive, with many seeing the model as a powerful contender to top-tier, closed-source AIs.

The model is praised for its superior reasoning and problem-solving abilities, particularly in mathematics and coding. In several tests, it has shown an impressive capacity to break down complex tasks and generate functional code, including creating simple games and applications from scratch.

DeepSeek shook the technology world this year when it released AI models that compete with Western ones like OpenAI's ChatGPT with significantly lower operational costs. The new model followed that cost-effective tradition. Its capabilities are seen as a viable and more affordable alternative for developers and users who want high performance without the steep price tag of some commercial models.

Domestic chip support

For domestic chip support, DeepSeek said in a WeChat post its DeepSeek-V3.1 model's UE8M0 FP8 precision format is optimized for "soon-to-be-released next-generation domestic chips."

FP8, or 8-bit floating point, is a data processing format that allows AI models to operate more efficiently, using less memory while running faster than traditional methods.

The company did not identify which specific chip models or manufacturers would be supported.

The focus on domestic chip compatibility may signal that DeepSeek's AI models are being positioned to work with China's emerging semiconductor ecosystem.

(With input from Reuters)