DeepSeek today rolled out DeepSeek-R1-0528, an upgraded version of its R1 large language model that it says now rivals OpenAI’s O3 and Google’s (NASDAQ:GOOG) Gemini 2.5 Pro.

The China-based AI firm credited enhanced post-training algorithmic optimizations and a beefed-up compute pipeline for boosting reasoning accuracy from 70% to 87.5% on complex logic tasks, while cutting hallucination rates and improving vibe coding performance. DeepSeek highlighted benchmark wins in mathematics, programming and general inference, positioning R1-0528 as a peer to leading Western models.

This release follows DeepSeek’s recent open-source launch of Prover-V2, a specialist reasoning engine, and comes amid a flurry of Chinese AI advancementsAlibaba’s (NYSE:BABA) Qwen 3 and Baidu’s (NASDAQ:BIDU) Ernie 4.5/X1, both touting hybrid reasoning firepower. DeepSeek argues that its combination of open-development ethos and performance parity gives it a unique edge in global AI research.

Investors and partners should care because DeepSeek-R1-0528’s near-par with top-tier LLMs could accelerate enterprise deployments in Asia and beyond, drive cloud-compute demand, and intensify competition in the rapidly evolving AI landscape. As Western and Chinese models vie for supremacy, benchmarks like these will shape strategic bets on talent, infrastructure and cross-border AI collaborations.

With R1-0528 available now on Hugging Face, markets will watch for adoption by startups and research labs, potential licensing deals, and further advances in DeepSeek’s open-source roadmap.

This article first appeared on GuruFocus.