DeepSeek has emerged as the leading open-source AI model developer, surpassing Meta's Llama and Mistral, after releasing its latest model V3 with breakthrough cost efficiencies, research and consultancy firm SemiAnalysis reported on Friday.

The Chinese startup, backed by hedge fund High-Flyer, reached this milestone through innovations in Multi-head Latent Attention technology, which cut inference costs by 93.3% versus standard methods. Despite offering services below cost to gain market share, its performance matches or exceeds OpenAI's GPT-4.

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