Close Menu

    Stay Ahead with Exclusive Updates!

    Enter your email below and be the first to know what’s happening in the ever-evolving world of technology!

    What's Hot

    SambaNova Just Raised $1 Billion at an $11 Billion Valuation to Challenge Nvidia on AI Inference. The Bet Is That Speed at the Edge Matters More Than Raw Training Power and Enterprises Are Starting to Agree.

    July 20, 2026

    SK Hynix Just Raised $26.5 Billion on Nasdaq in One of the Largest U.S. Equity Offerings Any Asian Company Has Ever Completed. The Money Has One Destination and It Is Not Coming Back.

    July 20, 2026

    Meta’s Custom AI Chip Iris Is Going Into Production in September. The Company Spending $145 Billion on AI This Year Has Decided the Cost of Depending on Nvidia Is No Longer Worth It.

    July 19, 2026
    Facebook X (Twitter) Instagram
    Facebook X (Twitter)
    PhronewsPhronews
    • Home
    • Big Tech & Startups

      SambaNova Just Raised $1 Billion at an $11 Billion Valuation to Challenge Nvidia on AI Inference. The Bet Is That Speed at the Edge Matters More Than Raw Training Power and Enterprises Are Starting to Agree.

      July 20, 2026

      SK Hynix Just Raised $26.5 Billion on Nasdaq in One of the Largest U.S. Equity Offerings Any Asian Company Has Ever Completed. The Money Has One Destination and It Is Not Coming Back.

      July 20, 2026

      Meta’s Custom AI Chip Iris Is Going Into Production in September. The Company Spending $145 Billion on AI This Year Has Decided the Cost of Depending on Nvidia Is No Longer Worth It.

      July 19, 2026

      Microsoft Just Cut 4,800 Jobs and Xbox Is Absorbing 3,200 of Them. The Division That Was Already Struggling Just Took the Heaviest Hit in the Company’s Biggest Layoff Round in Years.

      July 19, 2026

      Apple Just Locked In Its Most Important Chip Partnership Until 2031. Here Is What the Broadcom Extension Reveals About How Serious Apple Is About Owning Its Own Silicon Future

      July 18, 2026
    • Crypto

      Market Collapse: What Happened to NFTs?

      April 23, 2026

      Quantum Computing Advances Force Coinbase and Institutional Custodians to Rethink Crypto Security

      March 8, 2026

      AI Assisted Hacking Groups Target Crypto Firms With Multi-Layered Social Engineering

      February 18, 2026

      Global Crypto Regulations Expand as 2026 Begins With New Data Collection Frameworks and National Laws

      January 16, 2026

      Coinbase Bets on Stablecoin and On-Chain Growth as Key Market Drivers in 2026 Strategy

      January 10, 2026
    • Gadgets & Smart Tech
      Featured

      AI Has Spent Three Years Getting Smarter for People Who Can Already Afford It. Nokia Just Changed That and the Implications Go Further Than Anyone Is Crediting

      By fariehanJuly 18, 2026
      Recent

      AI Has Spent Three Years Getting Smarter for People Who Can Already Afford It. Nokia Just Changed That and the Implications Go Further Than Anyone Is Crediting

      July 18, 2026

      Samsung Is About to Show Its Next Foldable Phones and the Market It Is Competing In Has Never Been More Crowded. Here Is What Galaxy Unpacked 2026 Needs to Deliver

      July 18, 2026

      Tesla Just Launched Its Robotaxi in Miami with No Safety Monitor Inside the Car

      July 14, 2026
    • Cybersecurity & Online Safety

      A 15-Year-Old Linux Flaw Just Surfaced With a Near-Perfect Exploit. GhostLock Hands Any Local User Root Access and Can Break Out of Containers. Every Linux System Running Today Is Potentially Exposed.

      July 19, 2026

      Accenture Confirmed a Breach After a Hacker Listed 35GB of Its Source Code for Sale. The Company Whose Entire Business Is Securing Others Just Became the Most Embarrassing Cautionary Tale in Cybersecurity.

      July 18, 2026

      Researchers Just Documented the First AI-Powered Ransomware That Rewrites Itself Mid-Attack. JadePuffer Does Not Wait to Be Stopped. It Adapts Before You Can.

      July 18, 2026

      Hackers Stole 630GB of Apple and Tesla Manufacturing Secrets from Tata Electronics. The Breach Confirms Everything Supply Chain Security Experts Have Warned About for Years.

      July 9, 2026

      Apple Just Pushed an Unscheduled Security Update Because AI-Powered Attacks Are Moving Faster Than Its Normal Patch Cycle Can Handle

      July 6, 2026
    PhronewsPhronews
    Home»Artificial Intelligence & The Future»Why DeepSeek’s AI Upgrade with Domestic Chips Excites China
    Artificial Intelligence & The Future

    Why DeepSeek’s AI Upgrade with Domestic Chips Excites China

    oluchiBy oluchiAugust 22, 2025Updated:August 22, 2025No Comments
    Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email
    DeepSeek introduces V3.1 AI model, enhancing reasoning and accuracy with domestically produced chips and hybrid inference modes
    Image Generated from the Economic Times

    China’s artificial intelligence scene just got a major boost thanks to DeepSeek. The excitement? It’s not just about the upgrade but also the factor used in the AI upgrade. The company on Thursday unveiled an upgraded version of its flagship model, the V3 model, that operates on domestically made chips.

    Let’s explore why this is such a big leap for the AI industry in China.

    Meet Flagship V3.1.

    The original DeepSeek V3 model, released in December 2024, actively trained on 671 billion parameters and featured 128,000-token context windows, enabling it to perform complex tasks with ease. Now, the V3.1 builds on that foundation with some serious enhancements.

    Meet DeepSeek V3.1, an AI model with hybrid inference (Think and Non-Think modes). Users can switch between the “non-think” mode that gives standard and direct responses and the “think” mode that offers a more deliberate and multi-step reasoning process.

    DeepSeek V3.1 Think offers faster thinking speed compared to DeepSeek-R1-0528. In general benchmarks, the V3.1 scored higher than R1-0528 and V3-0324 at solving coding tasks, multiple languages, and simulated command-line environment assessments.

    Although the V3.1 has shorter outputs (15,889 tokens) compared to R1-0528’s 22,615, the V3.1 scored a higher percentage in accuracy and reasoning than R1-0528. With stronger agent skills, the V3.1 is less prone to hallucinations.

    When comparing it to the V3 model, which includes a 32K and 128K extension phase, the V3.1 actively increases the 32K extension phase by 10-fold (i.e., 10x more data) and the 128K phase by 3.3-fold. This allows the V3.1 to have a longer memory upgrade and better smarts in math.

    The V3.1 actively trained with UE8M0, one of the specific FP8 (8-bit floating point) formats, which lets AI models run faster and cheaper while maintaining accuracy. The UE8M0 makes it compatible with the upcoming domestic chips. 

    The UE8M0 scalability also allows DeepSeek to train long-context models without running into GPU memory limits.

    Why This Matters to China’s Tech 

    Although China boasts advanced tech and smarts, it is still lags significantly behind the US in the AI race. And the reason for this? China’s dependence on US-made chips like Nvidia’s H800 series, which powered DeepSeek’s V3 model.

    The trade war between China and the US, prompted a ban on chip sales to China, which compelling China to find a way to improve their chip-making abilities. And while China has been able to make leeway, it hasn’t been without issues.

    For instance, the delay in the release of the DeepSeek R2 model was due to the inability to train the model using Huawei’s Ascend chips. This led to the company resorting back to Nvidia’s chips for training and Huawei’s for inference.

    That’s why this move with V3.1 feels like a comeback story. With the UE8M0, the V.31 actively adapts to run on the next generation of domestic chips while offering sustainability, speed, and cost efficiency. 

    Although the specific chip remains undisclosed, China teases that it may soon unveil hardware that matches or rivals with its imported chips in efficiency. 

    What’s Next for DeepSeek?

    The V.31 actively prepares to leverage domestically made chips, although the vendors remain undisclosed for now. Until Sept 5, 4:00pm UTC, a new pricing system will start off and off-peak discounts for DeepSeek products will end.

    DeepSeek’s V.31 release is more than an AI upgrade; it is a bold statement. By ensuring compatibility between its cutting-edge infrastructure and domestic chip compatibility, it has opened a new door to how AI chips will be viewed. 

    Thanks to this, software developers worldwide might soon see cheaper and more accessible models of AI chips.

    AI accuracy AI and math AI benchmarks Ai Cost Efficiency AI hallucination reduction AI in China AI infrastructure AI memory upgrade AI race AI reasoning AI scalability AI self-reliance China Ai Speed AI sustainability AI upgrade Artificial Intelligence China AI China Tech Independence China tech innovation DeepSeek AI upgrade DeepSeek Chip Compatability DeepSeek V3.1 DeepSeek-V3.1 model Domestic chips Domestic Chips China FP8 format future of ai Global AI competition Huawei Ascend Hybrid inference Long-context AI Next-gen AI chips Non-think mode AI Nvidia vs China Semiconductor independence Think mode AI UE8M0 UE8M0 FP8 precision format US China chip war
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    oluchi
    • X (Twitter)
    • LinkedIn

    I am a content writer with over three years of experience. I specialize in creating clear, engaging, and value-driven content across diverse niches, and I’m now focused on the tech and business space. My strong research skills, paired with a natural storytelling ability, enable me to break down complex topics into compelling, reader-friendly articles. As an avid reader and music lover, I bring creativity, insight, and a sharp eye for detail to every piece I write.

    Related Posts

    SambaNova Just Raised $1 Billion at an $11 Billion Valuation to Challenge Nvidia on AI Inference. The Bet Is That Speed at the Edge Matters More Than Raw Training Power and Enterprises Are Starting to Agree.

    July 20, 2026

    SK Hynix Just Raised $26.5 Billion on Nasdaq in One of the Largest U.S. Equity Offerings Any Asian Company Has Ever Completed. The Money Has One Destination and It Is Not Coming Back.

    July 20, 2026

    Meta’s Custom AI Chip Iris Is Going Into Production in September. The Company Spending $145 Billion on AI This Year Has Decided the Cost of Depending on Nvidia Is No Longer Worth It.

    July 19, 2026

    Comments are closed.

    Top Posts

    Coinbase responds to hack: customer impact and official statement

    May 22, 2025

    Anthropic Will Use Claude User Chats For Data Training

    October 16, 2025

    Cursor AI Hits 1 Million Daily Users. Why Developers Are Switching to This Coding Tool

    March 23, 2026

    MIT Study Reveals ChatGPT Impairs Brain Activity & Thinking

    June 29, 2025
    Don't Miss
    Artificial Intelligence & The Future

    SambaNova Just Raised $1 Billion at an $11 Billion Valuation to Challenge Nvidia on AI Inference. The Bet Is That Speed at the Edge Matters More Than Raw Training Power and Enterprises Are Starting to Agree.

    By preciousJuly 20, 2026

    SambaNova has secured $1 billion in new funding at an $11 billion post money valuation…

    SK Hynix Just Raised $26.5 Billion on Nasdaq in One of the Largest U.S. Equity Offerings Any Asian Company Has Ever Completed. The Money Has One Destination and It Is Not Coming Back.

    July 20, 2026

    Meta’s Custom AI Chip Iris Is Going Into Production in September. The Company Spending $145 Billion on AI This Year Has Decided the Cost of Depending on Nvidia Is No Longer Worth It.

    July 19, 2026

    Microsoft Just Cut 4,800 Jobs and Xbox Is Absorbing 3,200 of Them. The Division That Was Already Struggling Just Took the Heaviest Hit in the Company’s Biggest Layoff Round in Years.

    July 19, 2026
    Stay In Touch
    • Facebook
    • Twitter
    About Us
    About Us

    Evolving from Phronesis News, Phronews brings deep insight and smart analysis to the world of technology. Stay informed, stay ahead, and navigate tech with wisdom.
    We're accepting new partnerships right now.

    Email Us: info@phronews.com

    Facebook X (Twitter) Pinterest YouTube
    Our Picks
    Most Popular

    Coinbase responds to hack: customer impact and official statement

    May 22, 2025

    Anthropic Will Use Claude User Chats For Data Training

    October 16, 2025

    Cursor AI Hits 1 Million Daily Users. Why Developers Are Switching to This Coding Tool

    March 23, 2026
    © 2025. Phronews.
    • Home
    • About Us
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.