Sep 29, 2025

China’s DeepSeek Launches “Intermediate” AI Model to Challenge the Frontier

According to Reuters, DeepSeek’s latest model V3.2-Exp introduces a new sparse attention mechanism, enabling more efficient handling of long sequences while reducing computational overhead.

The company also announced API price cuts of 50%+, positioning this release as a strategic move to pressure rivals both domestically (e.g. Alibaba’s Qwen) and internationally (e.g. OpenAI).

DeepSeek’s ambition is to use this intermediate model as a bridge until its next-generation architecture is ready, hoping that performance gains and cost reductions will attract adoption and momentum.

Key Highlights

  • DeepSeek releases V3.2-Exp, an “intermediate” model with sparse attention innovation

  • Applies 50%+ API pricing cuts to enhance competitiveness

  • The model is positioned as a precursor to next-gen architectures

  • Aims to push pressure on both Chinese and global AI rivals

Why This Matters

  1. Efficiency & cost breakthroughs: Innovations like sparse attention can reduce barriers for training and inference at scale.

  2. Aggressive pricing strategy: By cutting API costs deeply, DeepSeek aims to grow market share rapidly.

  3. Strategic positioning: Framing it as an intermediate model allows DeepSeek to iterate quickly and compete continuously.

  4. Global AI pressure: Moves from Chinese AI firms like DeepSeek will be watched closely by both domestic and international competitors.

Source
Reuters – Full Article

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