China's DeepSeek releases preview of long-awaited V4 model as AI race intensifies

Chinese AI startup DeepSeek has just launched a preview of its much-anticipated V4 large language model, offering users a glimpse into its enhanced features and capabilities. This release comes over a year after the introduction of the R1 reasoning model, which made waves in the global tech industry with its remarkable performance and efficiency, purportedly developed at a significantly lower cost compared to American counterparts. Similar to its predecessor, the V3 model, the new V4 upgrade remains open source, meaning developers can download the code, run it on their systems, and customize it to their needs. Based in Hangzhou, DeepSeek asserts that the V4 model showcases impressive performance, particularly excelling in agent-based tasks, knowledge processing, and inference, outpacing many domestic competitors. Furthermore, the V4 has been fine-tuned for compatibility with well-known agent tools, including Anthropic's Claude Code and OpenClaw, making it a versatile option for developers. The model is being offered in two versions: 'pro' and 'flash', catering to different user requirements based on size. Founded in 2023, DeepSeek first garnered attention in late 2024 with its free, open-source V3 model, which utilized less powerful chips for training and was created at a fraction of the cost compared to offerings from industry giants like OpenAI and Google. This was followed by the release of the R1 reasoning model in January 2025, which matched or surpassed benchmarks set by leading large language models worldwide. The introduction of a competitive open-source model has sparked discussions in tech circles about the potential impact on AI infrastructure spending. While DeepSeek has rolled out several model upgrades since then, none have matched the initial excitement generated by the R1 model. As the AI landscape in China becomes increasingly competitive, with major players like Alibaba and ByteDance also launching new models this year, DeepSeek is poised to face significant challenges ahead.