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

    An Enterprise Client Accidentally Spent $500 Million on Claude in a Single Month. Every Company Deploying AI Agents Needs to Read This.

    June 3, 2026

    Anthropic Just Surpassed OpenAI in the Private Market. The AI Race Has A New Leader and the Gap Is Widening Fast.

    June 3, 2026

    GitHub Lost 3,800 Internal Repositories to a Poisoned Developer Extension. The Supply Chain Attack Nobody Saw Coming Is Now the Most Dangerous Kind.

    June 2, 2026
    Facebook X (Twitter) Instagram
    Facebook X (Twitter)
    PhronewsPhronews
    • Home
    • Big Tech & Startups

      Anthropic Just Surpassed OpenAI in the Private Market. The AI Race Has A New Leader and the Gap Is Widening Fast.

      June 3, 2026

      Trump Backed Down on His AI Executive Order After Big Tech Pushed Back. What the Retreat Reveals About U.S. AI Policy Is More Important Than the Order Itself.

      May 31, 2026

      SpaceX Filed Its IPO Papers and Is Targeting a $1.75 Trillion Valuation. If It Goes Through It Will Be the Largest Public Offering in History and It Will Reshape the Tech Market Permanently.

      May 31, 2026

      Foxconn Got Hit by Ransomware and 11 Million Files Were Stolen. The Nitrogen Attack on the World’s Largest Electronics Maker Has Consequences for Every Big Tech Supply Chain

      May 31, 2026

      Anthropic Is About to Turn a Profit for the First Time. Its Q2 Revenue Is Expected to Hit $10.9 Billion and That Number Changes Everything About the AI Business Model.

      May 28, 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

      Foldable Phones Are No Longer a Gimmick — The Motorola Razr 2026 Is the Latest Sign That Foldables Are Going Mainstream

      By fariehanMay 3, 2026
      Recent

      Foldable Phones Are No Longer a Gimmick — The Motorola Razr 2026 Is the Latest Sign That Foldables Are Going Mainstream

      May 3, 2026

      Meta Raises Quest VR Headset Prices as Component Costs Rise

      May 1, 2026

      Robotics Showcase: China Uses a Half-Marathon to Signal Progress in Humanoid Tech

      April 27, 2026
    • Cybersecurity & Online Safety

      GitHub Lost 3,800 Internal Repositories to a Poisoned Developer Extension. The Supply Chain Attack Nobody Saw Coming Is Now the Most Dangerous Kind.

      June 2, 2026

      Foxconn Got Hit by Ransomware and 11 Million Files Were Stolen. The Nitrogen Attack on the World’s Largest Electronics Maker Has Consequences for Every Big Tech Supply Chain

      May 31, 2026

      A Cybersecurity Firm Just Had Its Own Source Code Stolen. Trellix’s Breach Is the Most Embarrassing Kind and the Most Instructive One.

      May 22, 2026

      Hackers Built a Zero-Day Exploit Using AI and Almost Got Away With It. Google Caught It in Time. Next Time May Be Different.

      May 19, 2026

      275 Million Students Had Their Data Exposed in the Largest Education Cyberattack Ever Recorded. Here Is Exactly What Happened to Canvas

      May 19, 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

    An Enterprise Client Accidentally Spent $500 Million on Claude in a Single Month. Every Company Deploying AI Agents Needs to Read This.

    June 3, 2026

    Anthropic Just Surpassed OpenAI in the Private Market. The AI Race Has A New Leader and the Gap Is Widening Fast.

    June 3, 2026

    Trump Backed Down on His AI Executive Order After Big Tech Pushed Back. What the Retreat Reveals About U.S. AI Policy Is More Important Than the Order Itself.

    May 31, 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

    An Enterprise Client Accidentally Spent $500 Million on Claude in a Single Month. Every Company Deploying AI Agents Needs to Read This.

    By preciousJune 3, 2026

    An unnamed enterprise racked up roughly $500 million in charges on Anthropic’s Claude in a…

    Anthropic Just Surpassed OpenAI in the Private Market. The AI Race Has A New Leader and the Gap Is Widening Fast.

    June 3, 2026

    GitHub Lost 3,800 Internal Repositories to a Poisoned Developer Extension. The Supply Chain Attack Nobody Saw Coming Is Now the Most Dangerous Kind.

    June 2, 2026

    Trump Backed Down on His AI Executive Order After Big Tech Pushed Back. What the Retreat Reveals About U.S. AI Policy Is More Important Than the Order Itself.

    May 31, 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.