Chinese AI firm DeepSeek released its new 685-billion parameter V3.1 artificial intelligence model on August 19, 2025. This system directly challenges American AI giants, as the model uploaded to the Hugging Face platform achieved a 71.6% score on the Aider coding benchmark. This result surpasses Claude Opus 4's performance while operating at just the fraction of the competitor's cost, charging merely $1.01 per coding task compared to nearly $70 for American alternatives
The Hangzhou-based company, backed by High-Flyer Capital Management, has created an innovative hybrid system that uniquely combines chat, reasoning, and coding functions. The system can process up to 128,000 tokens of context, equivalent to a 400-page book. Developer community analyses reveal the code of the model contains four new special features that enable real-time web searching and advanced internal reasoning processes. The timing holds strategic significance, as the release comes just weeks after OpenAI's GPT-5 and Anthropic's Claude 4 model announcements, directly challenging American tech giants.
Alongside its latest model, DeepSeek has introduced Chinese-manufactured chips specifically designed to reduce dependency on American semiconductors. This move aligns with China's comprehensive effort to build a self-sustaining AI infrastructure, particularly in light of US export controls. Sam Altman, CEO of OpenAI, acknowledged the growing influence of Chinese models in a recent interview, noting that competition from open-source platforms like DeepSeek contributed to OpenAI's decision to release its own open-weight models, illustrating the intense AI technology race between the US and China.
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