China’s DeepSeek upgrades AI model to support domestic chips

Published 21/08/2025, 11:20
China’s DeepSeek upgrades AI model to support domestic chips

Investing.com -- Chinese artificial intelligence startup DeepSeek released an upgrade to its flagship V3 model on Thursday that includes optimization for Chinese-made chips and faster processing speeds.

The new DeepSeek-V3.1 model features UE8M0 FP8 precision format that is designed to work with "soon-to-be-released next-generation domestic chips," according to the company’s WeChat post. DeepSeek did not specify which chip models or manufacturers would be supported by this new compatibility feature.

This marks DeepSeek’s third model update in recent months, following an R1 model upgrade in May and an earlier V3 enhancement in March.

The focus on domestic chip compatibility could indicate that DeepSeek is aligning its AI models with China’s growing semiconductor ecosystem, as Beijing continues efforts to develop alternatives to U.S. technology amid Washington’s export restrictions.

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