The Download: DeepSeek's latest AI breakthrough, and the race to build world models Plus: China has blocked Meta's $2 billion acquisition of AI startup Manus. On Friday, Chinese AI firm DeepSeek released a preview of V4, its long-awaited new flagship model. Notably, the model can process much longer prompts than its last generation, thanks to a new design that handles large amounts of text more efficiently. While the model remains open source, its performance matches leading closed-source rivals from Anthropic, OpenAI, and Google. Here are three ways V4 could shake up AI . AI systems have already gained impressive mastery over the digital world, but the physical world remains humanity's domain.

The long-awaited V4 is more efficient and a win for Chinese chipmakers. On Friday, Chinese AI firm DeepSeek released a preview of V4, its long-awaited new flagship model. Notably, the model can process much longer prompts than its last generation, thanks to a new design that helps it handle large amounts of text more efficiently. Like DeepSeek's previous models, V4 is open source, meaning it is available for anyone to download, use, and modify. V4 marks DeepSeek's most significant release since R1, the reasoning model it launched in January 2025. R1, which was trained on limited computing resources, stunned the global AI industry with its strong performance and efficiency, turning DeepSeek from a little-known research team into China's best-known AI company almost overnight.

DeepSeek promises its new AI model has'world-class' reasoning The new models give users access to a'cost effective 1 million context length.' DeepSeek has released its latest AI models, the V4 Pro and Flash versions, a bit over a year after it went viral and became the top rated free app on Apple's App Store in the US. "Welcome to the era of cost-effective 1 million context length," DeepSeek said in its announcement . Context length is what you call the maximum number of tokens that an AI model can remember, so the bigger it is, the more coherent and consistent an AI is when it comes to extended conversations. OpenAI's recently announced GPT 5.5 has a context window ranging from 400,000 to 1 million, for instance.

China's DeepSeek unveils latest models a year after upending global tech China's DeepSeek has unveiled the latest versions of its signature artificial intelligence-powered chatbot, a year after its flagship model sent shockwaves through the global tech scene. The Chinese start-up launched preview versions of DeepSeek-V4-Pro and DeepSeek-V4-Flash on Friday as it touted its ability to go toe-to-toe with US rivals such as OpenAI and Google. The "flash" model has similar reasoning abilities to the "pro" version, while offering faster response times and more cost-effective pricing, the Hangzhou-based startup said. Like DeepSeek's previous chatbots, V4-Pro and V4-Flash follow an open-source model, meaning developers are free to use and modify them at will. The release comes after DeepSeek-R1 stunned the tech sector upon its launch in January last year with capabilities broadly comparable with those of ChatGPT and Gemini.

Chinese open models are spreading fast, from Hugging Face to Silicon Valley. In this photo illustration, the DeepSeek apps is seen on a phone in front of a flag of China on January 28, 2025 in Hong Kong, China. The past year has marked a turning point for Chinese AI. Since DeepSeek released its R1 reasoning model in January 2025, Chinese companies have repeatedly delivered AI models that match the performance of leading Western models at a fraction of the cost. Just last week the Chinese firm Moonshot AI released its latest open-weight model, Kimi K2.5, which came close to top proprietary systems such as Anthropic's Claude Opus on some early benchmarks. The difference: K2.5 is roughly one-seventh Opus's price.

Two important things happened on January 20, 2025. In Washington, D.C., Donald Trump was inaugurated as President of the United States. In Hangzhou, China, a little-known Chinese firm called DeepSeek released R1, an AI model that industry watchers called a "Sputnik moment" for the country's AI industry. "Whether we like it or not, we're suddenly engaged in a fast-paced competition to build and define this groundbreaking technology that will determine so much about the future of civilization," said Trump later that year, as he announced his administration's AI action plan, which was titled "Winning the Race." There are many interpretations of what AI companies and their governments are racing towards, says AI policy researcher Lennart Heim: to deploy AI systems in the economy, to build robots, to create human-like artificial general intelligence.

He Xiaopeng launches Xpeng's next-gen Iron humanoid robot during a press conference at the company's headquarters in Guangzhou on November 5, 2025. He Xiaopeng launches Xpeng's next-gen Iron humanoid robot during a press conference at the company's headquarters in Guangzhou on November 5, 2025. It was a controversy laced with pride for He Xiaopeng. In November, He, the founder and CEO of Chinese physical AI firm XPeng, had just debuted his new humanoid robot, IRON, whose balance, posture shifts, and coquettish swagger mirrored human motion with such eerie precision that a slew of netizens accused him of faking the demonstration by putting a human in a bodysuit. To silence the naysayers, He boldly cut open the robot's leg live on stage to reveal the intricate mechanical systems that allow it to adapt to uneven surfaces and maintain stability just like the human body. "At first, it made me sad," He tells TIME in his Guangzhou headquarters.

Thousands of Companies Are Driving China's AI Boom. How the Cyberspace Administration of China inadvertently made a guide to the country's homegrown AI revolution. When DeepSeek burst onto the global stage in January 2025, it seemed to appear out of nowhere. But the large language model was just one of the thousands of generative AI tools that have been released in China since 2023--and there's a public archive of every single one of them. Here are 23 ways China is rewiring the future .

As Europe's longstanding alliance with the US falters, its push to become a self-sufficient AI superpower has become more urgent. As the relationship between the US and its European allies shows signs of strain, AI labs across the continent are searching for inventive ways to close the gap with American rivals that have so far dominated the field. With rare exceptions, US-based firms outstrip European competitors across the AI production line--from processor design and manufacturing, to datacenter capacity, to model and application development. Likewise, the US has captured a massive proportion of the money pouring into AI, reflected in the performance last year of its homegrown stocks and the growth of its econonmy . The belief in some quarters is that the US-based leaders --Nvidia, Google, Meta, OpenAI, Anthropic, and the like--are already so entrenched as to make it impossible for European nations to break their dependency on American AI, mirroring the pattern in cloud services.

In the AI boom, chatbots and GPTs come and go quickly. On a drizzly and windswept afternoon this summer, I visited the headquarters of Rokid, a startup developing smart glasses in Hangzhou, China. As I chatted with engineers, their words were swiftly translated from Mandarin to English, and then transcribed onto a tiny translucent screen just above my right eye using one of the company's new prototype devices. Rokid's high-tech spectacles use Qwen, an open-weight large language model developed by the Chinese ecommerce giant Alibaba. OpenAI's GPT-5, Google's Gemini 3, and Anthropic's Claude often score higher on benchmarks designed to gauge different dimensions of machine cleverness.