DeepSeek V4 is here. It’s good news for efficiency and bad news for the myth
DeepSeek has published its V4 model under MIT license, with notable improvements in code and architecture designed for Chinese chips. It has also admitted, in its own technical report, that it is three to six months behind leading Western models. For a laboratory that A little over a year ago the global narrative of AI changedthat is much more than a nuance. Why is it important. DeepSeek became a symbol in January 2025. Its moment shook the markets, questioned the logic of the American technology stock market and convinced half the world that China could compete head-to-head on the frontier of AI, at a fraction of the cost. It’s not that V4 destroys that story, but it does complicate it a bit. China’s most important laboratory in AI arrives with a model that its own engineers describe as a step, not a leap. The context. V4 has taken longer than expected to arrive. According to sector sources collected for 36KrDeepSeek suffered a serious training failure in mid-2025 while trying to migrate its infrastructure from NVIDIA to Huawei’s Ascend chips. Internal opinions on technical direction were not aligned, and the founder, Liang Wenfengimposed conditions that were difficult to execute. The result: months of delay and a model that, furthermore, is still not multimodal, postponed due to lack of computing capacity and cash. Between the lines. The most interesting thing about V4 is in its architecture. The model introduces TileLang, a domain-specific language that allows low-level code to be decoupled from CUDA (the NVIDIA standard) and compile it for different chips. It also incorporates MegaMoE, a kernel designed to reduce latency in expert parallelism that already runs on Ascend hardware. But V4 training has continued using NVIDIA GPUs. Independence is, for the moment, more of an aspiration than an accomplished fact. turning point. While DeepSeek looked inward, the Chinese market has been reorganizing itself without it: Doubaofrom ByteDance, has become the most downloaded chatbot in China. MiniMax and Z.ai They have gone public. Alibaba has achieved great adoption thanks to vertical applications. DeepSeek never wanted to build a consumer product, and the market hasn’t waited for it. The internal bill has also arrived: the laboratory has lost key talent to Tencent, ByteDance and Xiaomi in practically all areas. Liang Wenfeng refused to give up 20% to an unidentified large investor. And now, for the first time, DeepSeek opens an external funding round. Main loser? The narrative of open source Chinese as a real alternative to the Western closed model has taken a hit. A Qwen employee has told 36Kr that “the golden age of nonprofit AI development is over.” The big question. It’s whether DeepSeek can regain lost ground. That depends largely on Huawei, whose Ascend 950 promises to scale well with V4, but 750,000 units are equivalent, adjusted for quality, to a week of American production. The gap is not closed with ingenious architectures. It is closed with silicon. In Xataka | Companies around the world face an irresolvable dilemma: either they are with China or with the US, with both it is no longer possible Featured image | Solen Feyissa