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DeepSeek hints latest model will be compatible with China’s ‘next generation’ homegrown AI chips

DeepSeek's V3.1 AI model uses a new precision format to enhance training efficiency by reducing memory use up to 75%, aligning with China's push for self-sufficient AI technology.

  • DeepSeek, a Hangzhou-based AI startup, released its V3.1 model on Thursday, designed for upcoming Chinese home-grown AI chips.
  • This release follows U.S. export restrictions in April that banned Nvidia’s advanced H20 chips, prompting China to urge domestic chip development.
  • V3.1 integrates a hybrid reasoning architecture supporting reasoning and non-reasoning modes, trained with the UE8M0 FP8 8-bit data format to enhance efficiency and compatibility.
  • DeepSeek said the UE8M0 FP8 format could cut memory use by up to 75%, increase training speed, and is tailored for soon-to-launch Chinese chips.
  • This development signals Chinese progress toward AI chip-stack self-sufficiency, potentially easing reliance on restricted U.S. imports amid ongoing geopolitical tensions.
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South China Morning Post broke the news in Hong Kong on Thursday, August 21, 2025.
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