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DeepSeek Plans February Launch of Coding-Focused AI Model V4, Report Says

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Chinese artificial intelligence startup DeepSeek is expected to launch its next-generation AI model, V4, in mid-February, with a strong focus on coding capabilities, The Information reported on Friday, citing people familiar with the matter.

According to the report, internal testing by DeepSeek employees indicates that the V4 model could outperform leading rivals such as Anthropic’s Claude and OpenAI’s GPT series in software development and coding-related tasks. The model is also said to show major improvements in handling extremely long and complex coding prompts, a feature that could give developers an edge when working on large-scale or intricate software projects.

Reuters was not able to independently verify the report, and DeepSeek did not immediately respond to a request for comment.

Based in Hangzhou, DeepSeek has rapidly emerged as a prominent player in China’s drive to build a domestic AI ecosystem and reduce reliance on foreign technology. The company attracted international attention after several Silicon Valley executives publicly praised its earlier models, including DeepSeek-V3 and DeepSeek-R1, for their performance and cost efficiency.

In January, Reuters reported that DeepSeek claimed to have developed a low-cost rival to ChatGPT, further boosting its profile in the global AI race. However, the company has also faced scrutiny in some countries over concerns related to data security and privacy practices, highlighting the growing regulatory attention surrounding advanced AI systems.

China’s Moonshot AI Launches Open-Source Model to Regain Market Share

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Chinese AI startup Moonshot AI unveiled its new open-source model, Kimi K2, on Friday, aiming to regain traction in the highly competitive domestic AI market. The model is designed with advanced coding skills and excels in general agent tasks and tool integration, enabling it to handle complex workflows more efficiently, the company said in a statement.

Moonshot claims Kimi K2 surpasses several mainstream open-source AI models, including DeepSeek’s V3, and competes closely with top U.S. models like Anthropic’s in certain coding-related functions. This release aligns with a growing trend among Chinese AI firms to open-source their models, contrasting with many U.S. tech giants, such as OpenAI and Google, which keep their most advanced AI technologies proprietary. However, some American companies like Meta have also embraced open-source AI models.

Open-sourcing helps companies build stronger developer communities, showcase technological prowess, and extend global influence—a strategic move by China to counter U.S. efforts to restrict its tech progress. Other Chinese tech giants that have open-sourced models include DeepSeek, Alibaba, Tencent, and Baidu.

Founded in 2023 by Tsinghua University graduate Yang Zhilin, Moonshot has become a key player in China’s AI scene, supported by major investors like Alibaba. The startup gained significant attention in 2024 for its long-text analysis and AI search capabilities but has seen its market position weaken after DeepSeek launched competitive low-cost models early this year.

According to the Chinese AI tracking site aicpb.com, Moonshot’s Kimi app was the third most-used AI product by monthly active users in August last year but slipped to seventh place by June 2025.