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China’s emboldened AI industry releases flurry of model updates

Success of DeepSeek inspires confidence as latest products are pushed out ahead of lunar new year holiday

Chinese artificial intelligence groups have been rushing out model updates before the lunar new year holiday, as the world wakes up to the sector’s major advances led by start-up DeepSeek in the face of US chip restrictions.

On Monday, the eve of China’s most important annual holiday, the Hangzhou-based company released a new open-source model for image generation, cementing its reputation as the disrupter-in-chief in a field previously dominated by US giants. It came hot on the heels of model releases from tech giant Alibaba and start-ups Moonshot and Zhipu.

“This is the equivalent of dropping a massive release on Christmas Eve. We’ve all been working overtime to get stuff out before the holiday,” said one product manager at a large language model start-up.

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