DeepSeek readies its next AI disruption

By
Nat Rubio-Licht

Jan 12, 2026

12:30pm UTC

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eepSeek is preparing to rattle the AI world once again.

The Chinese AI firm is reportedly preparing to launch its next-generation model, V4, featuring code-generation capabilities that could surpass competitors like OpenAI and Anthropic, according to The Information. 

The release would mark another major competitor in the open-source market as open-source models continue to catch up with their closed-source counterparts. But it’s not the only one:

  • Last week, web browser firm Mozilla revealed plans to invest in open-source AI by developing a “modular framework” that consolidates the scattered components of open-source AI development into one place. Mozilla CTO Raffi Krikorian said in a blog post that the open source ecosystem is “deeply fragmented.”
  • Open-source AI was also all over CES last week, with many startups using open models in their demos because of their accessibility. Nvidia CEO Jensen Huang called out open models in his keynote, noting that open models are “still solidly six months behind the frontier models” but are consistently “getting smarter and smarter.”

The goal of open models, and of open source innovation generally, is to democratize the technology. Open ecosystems allow anyone to access and innovate using powerful models without shouldering the expense. That kind of access could be tempting to enterprises, especially as AI costs become untenable.

Our Deeper View

A new DeepSeek model would be a win for the open-source AI ecosystem as a whole. However, it also represents another success for the open model market in China. Meanwhile, in the US, the open-source market is floundering, especially as Meta, one of the biggest providers of US-native open-source models, considers making its next model proprietary. Though support from organizations like Nvidia and Mozilla, as well as the success of firms like Reflection AI, give the US ecosystem a boost, many firms are opting to use open models from Chinese firms instead.