Chinese AI start-up DeepSeek has announced a major update to its R1 reasoning model, claiming it now performs on par with leading systems from OpenAI and Google.

The R1-0528 version, released following the model's initial launch in January, reportedly surpasses Alibaba's Qwen3, which debuted only weeks earlier in April.

According to DeepSeek, the upgrade significantly enhances reasoning, coding, and creative writing while cutting hallucination rates by half.

These improvements stem largely from greater computational resources applied after the training phase, allowing the model to outperform domestic rivals in benchmark tests involving maths, logic, and programming.

Unlike many Western competitors, DeepSeek takes an open-source approach. The company recently shared eight GitHub projects detailing methods to optimise computing, communication, and storage efficiency during training.

Its transparency and resource-efficient design have attracted attention, especially since its smaller distilled model rivals Alibaba's Qwen3-235B while being nearly 30 times lighter.

Major Chinese tech firms, including Tencent, Baidu and ByteDance, plan to integrate R1-0528 into their cloud services for enterprise clients. DeepSeek's progress signals China's continued push into globally competitive AI, driven by a young team determined to offer high performance with fewer resources

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