Chinese AI developer DeepSeek has released its latest model confirming the opinion of rival Nvidia (NVDA) that the country is just “nanoseconds” behind the U.S. when it comes to innovative technology.
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Experimental Release
Released quietly as a post on the developer forum Hugging Face, DeepSeek said that the V3.2-Exp was an “experimental release” that was more efficient to train and better at processing long sequences of text than previous iterations.
The Hangzhou-based company described the latest model as an “intermediate step toward our next-generation architecture.”
It said in the post that it “builds upon V3.1-Terminus by introducing DeepSeek Sparse Attention—a sparse attention mechanism designed to explore and validate optimizations for training and inference efficiency in long-context scenarios.”
It added again directed at tech boffins,: “This experimental release represents our ongoing research into more efficient transformer architectures, particularly focusing on improving computational efficiency when processing extended text sequences.”
DeepSeek shook up the U.S. tech sector earlier this year with its R1 model, which was just as effective as other models but cost just $294,000 to train.
It prompted global investors to dump tech stocks as they worried the new models could threaten the dominance of AI leaders including Nvidia and Advanced Micro Devices (AMD).
Although, they have broadly recovered since then – see above.
Nanoseconds Behind
The DeepSeek post came just 24 hours after Nvidia CEO Jensen Huang says China is just “nanoseconds behind” the U.S. in chipmaking and that Washington should stop trying to wall off the market.
Huang argued that allowing companies like Nvidia to sell into China would serve American interests by spreading U.S. technology and extending its geopolitical influence. “We’re up against a formidable, innovative, hungry, fast-moving, underregulated competitor,” Huang said, talking about the pedigree of China’s engineers.
His comments come as Nvidia hopes to ship its H20 AI GPU to Chinese customers again, following a months-long pause tied to new U.S. export rules. Nvidia is reportedly already working on a successor chip designed to comply with current restrictions while offering better performance.
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