DeepSeek Upgrades R1 AI Model: Improved Reasoning, Less Hallucination, and a Distilled Version

Reviewed byNidhi Govil

15 Sources

Chinese AI startup DeepSeek releases an update to its R1 reasoning model, claiming improved performance and reduced hallucination. The company also introduces a smaller, distilled version that can run on a single GPU.

DeepSeek Unveils Upgraded R1 Model

Chinese AI startup DeepSeek has released an updated version of its R1 reasoning AI model, marking a significant advancement in the field of artificial intelligence. The company announced the update, dubbed DeepSeek-R1-0528, on the developer platform Hugging Face, intensifying competition with U.S. rivals such as OpenAI and Google 15.

Source: Analytics Insight

Source: Analytics Insight

Improved Performance and Reduced Hallucination

According to DeepSeek, the latest iteration of R1 boasts enhanced reasoning capabilities and a reduced rate of hallucination. The company claims that the model "has significantly improved its depth of reasoning and inference capabilities by leveraging increased computational resources and introducing algorithmic optimization mechanisms during post-training" 3. This upgrade has reportedly brought the model's overall performance closer to that of industry leaders like OpenAI's O3 and Google's Gemini 2.5 Pro 34.

Technical Specifications and Availability

The updated R1 model is substantial in size, weighing in at 685 billion parameters. This heft suggests that without modification, the model is unlikely to run on consumer-grade hardware 1. DeepSeek has released the model under a permissive MIT license, allowing for commercial use without restrictions 12.

Distilled Version for Broader Accessibility

In addition to the full-sized update, DeepSeek has introduced a smaller, "distilled" version of the new R1, called DeepSeek-R1-0528-Qwen3-8B. This version was built using Alibaba's Qwen3-8B model as a foundation and is designed to run on a single GPU, making it more accessible for both academic research and industrial development focused on small-scale models 2.

Benchmark Performance

Source: The Verge

Source: The Verge

The distilled version of R1 has shown impressive results on certain benchmarks. DeepSeek claims that it outperforms Google's Gemini 2.5 Flash on AIME 2025, a collection of challenging math questions, and nearly matches Microsoft's Phi 4 reasoning plus model on another math skills test, HMMT 2.

Industry Impact and Competition

DeepSeek's R1 model initially stunned the AI world in January by rivaling systems from much larger U.S. developers, despite being built at what the company claimed was a fraction of the cost 4. This development has challenged the notion that scaling AI requires vast computing power and investment 5.

The release of the updated R1 and its distilled version has further intensified competition in the AI industry. It has prompted responses from tech giants, with Google's Gemini introducing discounted tiers of access and OpenAI cutting prices and releasing a mini version of its O3 model 5.

Source: VentureBeat

Source: VentureBeat

Future Developments

While DeepSeek continues to refine its R1 model, the industry is anticipating the release of R2, a successor to R1. Initially planned for May, the exact release date for R2 remains uncertain 5. As DeepSeek and other Chinese AI companies continue to advance their technologies, the global AI landscape is becoming increasingly competitive, with potential implications for international tech markets and regulatory considerations.

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