CHINESE startup DeepSeek is preparing to launch a next-generation AI agent by the end of this year, according to a Bloomberg report. The Hangzhou-based company is developing a system that can perform complex, multi-step tasks with minimal input from users. The model will also learn from its past actions to improve performance over time.

DeepSeek gained global attention earlier this year with the release of its R1 model. The system demonstrated advanced reasoning capabilities and was built at a reported cost of just US$6 million, far less than rivals like OpenAI’s ChatGPT or Google’s Gemini. R1 was also open source, allowing developers to freely access its code. The release disrupted the “bigger is better” approach in Silicon Valley, where massive budgets and vast datasets have dominated AI development.

Since R1, DeepSeek has moved cautiously. Founder Liang Wenfeng delayed the R2 model, a move attributed to technical refinements and his ongoing work at High-Flyer Asset Management. This deliberate pace differs from competitors like Alibaba and Tencent, which have accelerated their own AI rollouts.

Last month, DeepSeek rolled out its V3.1 update, expanding the context window to 128,000 tokens and increasing the parameter count to 685 billion. The company also now applies mandatory AI-generated content labels on all outputs, a policy that cannot be disabled and sets DeepSeek apart from its peers.

The upcoming R2 model will target the emerging market for AI agents. Unlike chatbots that deliver text-based responses, agents are designed to handle tasks such as travel planning, software debugging, and business workflows with little human supervision. Analysts view this technology as the next major step in AI, capable of boosting productivity and reshaping digital services.

Global competitors, including OpenAI, Microsoft, and Anthropic, have already introduced agent-focused features. DeepSeek aims to match and potentially surpass those efforts, continuing its push to challenge U.S. dominance in AI.(SD-Agencies)