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DeepSeek Debuts Upgrade to AI Model That Improves Reasoning and Coding | PYMNTS.com

Mar 25, 2025 - pymnts.com
DeepSeek, a Chinese startup, has launched an upgraded version of its V3 large language model on the AI development platform Hugging Face. This release is part of DeepSeek's strategy to establish itself in the competitive AI sector, alongside companies like OpenAI and Anthropic. The new model offers enhanced reasoning and coding capabilities compared to its predecessor. Earlier this year, DeepSeek gained attention by introducing AI models that rivaled OpenAI's ChatGPT in performance but at a lower cost. Apple CEO Tim Cook praised DeepSeek's AI models as "excellent" and highlighted the innovation's role in driving efficiency.

The introduction of DeepSeek's models has sparked discussions about AI infrastructure investment and the importance of reasoning models, which require increased spending on inference. Bloomberg Intelligence reports that AI investments by major companies like Amazon, Meta, and Microsoft are expected to grow significantly, with a focus on running AI systems rather than just building data centers and chips. Additionally, AI is transforming customer experience by enhancing personalization and engagement, with AI-powered systems evolving from cost centers to revenue generators. This shift is driven by omnichannel engagement, which is increasingly contributing to return on investment (ROI).

Key takeaways:

  • DeepSeek introduced an upgraded version of its V3 large language model, available on Hugging Face, aiming to compete with OpenAI and Anthropic.
  • Apple CEO Tim Cook praised DeepSeek's AI models as "excellent" and highlighted the innovation driving efficiency.
  • AI investments by major companies like Amazon, Meta, and Microsoft are expected to increase, focusing more on running AI systems rather than just infrastructure.
  • AI is enhancing customer experience by creating a more personalized and efficient interaction, transforming support systems from cost centers to revenue generators.
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