• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
NewslettersFortune Tech

Taking stock of DeepSeek V3.1, a new rival to OpenAI’s GPT-5

Andrew Nusca
By
Andrew Nusca
Andrew Nusca
Editorial Director, Brainstorm and author of Fortune Tech
Down Arrow Button Icon
Andrew Nusca
By
Andrew Nusca
Andrew Nusca
Editorial Director, Brainstorm and author of Fortune Tech
Down Arrow Button Icon
August 22, 2025, 6:08 AM ET
Updated August 22, 2025, 6:09 AM ET
The DeepSeek logo on a smartphone on August 21, 2025. (Photo: CFOTO/Future Publishing/Getty Images)
The DeepSeek logo on a smartphone on August 21, 2025. CFOTO/Future Publishing/Getty Images

Good morning. Lean and mean today, like Nathan Bateman’s dance moves.

Today’s tech news below. Have a wonderful weekend. —Andrew Nusca

Want to send thoughts or suggestions to Fortune Tech? Drop a line here.

China's DeepSeek quietly releases a rival to GPT-5

The DeepSeek logo on a smartphone on August 21, 2025. (Photo: CFOTO/Future Publishing/Getty Images)
The DeepSeek logo on a smartphone on August 21, 2025.
CFOTO/Future Publishing/Getty Images

Chinese AI startup DeepSeek shocked the world in January with an AI model, called R1, that rivaled OpenAI’s and Anthropic’s top large language models at a fraction of the cost.

Now, just two weeks after OpenAI debuted its latest model, GPT-5, DeepSeek is back with an update to its flagship V3 model that experts say matches GPT-5 on some benchmarks—and is strategically priced to undercut it.

The debut of DeepSeek’s new V3.1 model touches several of today’s biggest AI narratives at once. 

DeepSeek is a core part of China’s broader push to develop, deploy, and control advanced AI systems without relying on foreign technology. While U.S. companies have been hesitant to embrace DeepSeek’s models, they’ve been widely adopted in China and increasingly in other parts of the world. 

DeepSeek’s new release, coming just after OpenAI’s GPT-5—a rollout that fell short of industry watchers’ high expectations—underscores Beijing’s determination to keep pace with, or even leapfrog, top U.S. labs.

What makes the new model notable is how it was built, with a few advances that would be invisible to consumers. But for developers, these innovations make V3.1 cheaper to run and more versatile than many closed and more expensive rival models. 

For instance, its “mixture-of-experts” design means only a fraction of the (otherwise huge) model activates when answering any query, keeping computing costs lower for developers. 

The new model also combines both fast answers and reasoning in one hybrid system—something that few open-weight models have been able to do thus far. —Sharon Goldman

Google claims Gemini AI now 33x more energy-efficient

Google has released a detailed methodology to measure the energy, water, and carbon footprint of its AI models, addressing a critical gap in understanding AI’s environmental impact.

The company claims to have achieved major efficiency gains for its own AI. Over 12 months, the median energy use per Gemini Apps text prompt fell 33x, and carbon emissions dropped 44x, while still improving output quality, says Google.

To put it in perspective, each prompt now uses less energy than nine seconds of TV. 

With a 12% reduction in data centre emissions despite rising electricity demand, Google claims it is a "milestone" in sustainable AI development and energy transparency.

Google says it measures improvements by taking various factors into account, including total energy footprint, CPU and RAM usage, power usage effectiveness (PUE) of the data center, and data center water consumption.

Google has been focused on improving data centre efficiency for a long time.

In 2024, for example, it reduced data centre energy emissions by 12% even as electricity consumption grew by 27% year-over-year on the expansion of its business and services. 

The company made its latest achievements thanks to improvements at every layer of AI, including more efficient model architectures, efficient algorithms and quantisation, inference and serving, custom-built hardware and ultra-efficient data centres.

The search engine giant says the aim of its study is to drive industry-wide progress toward more efficient AI. —Manoj Sharma

How Palantir became the S&P 500’s best and worst stock of 2025

Palantir Technologies has created one of the most dramatic stories on Wall Street this year, defying conventional investment narratives. 

In 2025, it became the top-performing stock in the S&P 500, surging over 106% and at points climbing 144% from the start of the year—outpacing even AI heavyweights like Nvidia.

This explosive growth was fueled by its robust financial performance, notching its first billion-dollar quarter with momentum from government and commercial AI contracts.

However, Palantir’s meteoric rise has been followed by a brutal reversal. 

Over the past six trading sessions, Palantir shares plunged more than 17%, wiping out $73 billion in market capitalization and marking the largest drop since April. 

In recent days, Palantir has also been the worst performer in the S&P 500.

Palantir’s dramatic stock moves followed fresh fire from short-sellers, particularly Citron Research, led by Andrew Left. In a scathing report, Citron argued that Palantir’s stock was detached from business fundamentals and sound analysis.

Citron’s thesis is that OpenAI, widely recognized as the leader in AI, is about to receive a $500 billion valuation, with projected revenue of $29.6 billion in 2026, resulting in a price-to-sales ratio of nearly 17. 

By contrast, Palantir is forecasted to deliver $5.6 billion in revenue in 2026. Applying OpenAI’s valuation multiple to Palantir would yield a stock price of just $40. 

Short-sellers like Left insist that Palantir’s business isn’t as scalable or as subscription-based as Wall Street prefers, in stark contrast to OpenAI. Palantir’s dependence on government deals introduces uncertainty and volatility. 

It all leads Citron to claim that the stock is unjustifiably expensive even after recent losses—a study, if you will, in market euphoria versus valuation reality. —Nick Lichtenberg

More tech

—Apple HR drama. Nine current and former staffers accuse VP of Fitness Tech Jay Blahnik of inappropriate and retaliatory behavior.

—Target CEO Brian Cornell steps down. Intern-turned-COO Michael Fiddelke takes the retailer’s reins on Feb. 1.

—Trump taps Airbnb cofounder. Joe Gebbia will be the nation’s first chief design officer.

—Russia forces chat app installations. The state-backed messenger app MAX must be preinstalled on new phones and tablets from next month.

—Meta moves to Google Cloud. A reported $10 billion deal for servers, networking, storage, and more.

—Zoom shares jump 6% thanks to a sunnier-than-expected 2026 outlook.

—“Bell to bell” bans catch on. Seventeen U.S. states institute policies to curb students’ smartphone usage.

—Rent the Runway hands over the keys. Exchanges a controlling stake for the elimination of $240 million in debt.

—ByteDance releases open source AI model. After all, why not? Why shouldn’t I?

Endstop triggered

A meme featuring the Carrie Bradshaw character from "Sex and the City" with the caption, "...after all, seasons change. So do streaming services. Acclaimed TV shows come into your life and go. But it's comforting to know that the services you love will always raise their prices each year."

This is the web version of Fortune Tech, a daily newsletter breaking down the biggest players and stories shaping the future. Sign up to get it delivered free to your inbox.
About the Author
Andrew Nusca
By Andrew NuscaEditorial Director, Brainstorm and author of Fortune Tech
Instagram iconLinkedIn iconTwitter icon

Andrew Nusca is the editorial director of Brainstorm, Fortune's innovation-obsessed community and event series. He also authors Fortune Tech, Fortune’s flagship tech newsletter.

See full bioRight Arrow Button Icon

Latest in Newsletters

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Newsletters

The green head of what appears to be an alien pokes out from behind a rock set against a rural landscape with a power pylon in the background.
NewslettersEye on AI
AI’s ability to see ‘mirages’ shows how alien machine brains really are
By Jeremy KahnMarch 31, 2026
15 hours ago
She refused to hide. Now the world is listening to Gisèle Pelicot
NewslettersMPW Daily
She refused to hide. Now the world is listening to Gisèle Pelicot
By Emma HinchliffeMarch 31, 2026
17 hours ago
The ‘death of SaaS’ could be the best thing to ever happen to SaaS M&A
NewslettersTerm Sheet
The ‘death of SaaS’ could be the best thing to ever happen to SaaS M&A
By Allie GarfinkleMarch 31, 2026
21 hours ago
She was a customer before she was the CFO. Now she’s steering Workiva to $1 billion in revenue
NewslettersCFO Daily
She was a customer before she was the CFO. Now she’s steering Workiva to $1 billion in revenue
By Sheryl EstradaMarch 31, 2026
22 hours ago
Microsoft revamps Copilot—with Anthropic
NewslettersFortune Tech
Microsoft revamps Copilot—with Anthropic
By Alexei OreskovicMarch 31, 2026
23 hours ago
Ousted Air Canada CEO failed to speak French—and forgot the basics of crisis leadership
NewslettersCEO Daily
Ousted Air Canada CEO failed to speak French—and forgot the basics of crisis leadership
By Diane BradyMarch 31, 2026
1 day ago

Most Popular

Jerome Powell says the $39 trillion national debt is ‘not unsustainable,’ but warns the trajectory ‘will not end well’
Economy
Jerome Powell says the $39 trillion national debt is ‘not unsustainable,’ but warns the trajectory ‘will not end well’
By Fortune EditorsMarch 30, 2026
2 days ago
A man used AI to call 3,000 Irish bartenders to track the cost of Guinness. Now pubs are lowering their prices to compete
AI
A man used AI to call 3,000 Irish bartenders to track the cost of Guinness. Now pubs are lowering their prices to compete
By Fortune EditorsMarch 30, 2026
2 days ago
Markets cheer as Trump threatens to abandon Iran war, but Jamie Dimon sides with allies: ‘Win this thing and clean up the straits’
Energy
Markets cheer as Trump threatens to abandon Iran war, but Jamie Dimon sides with allies: ‘Win this thing and clean up the straits’
By Fortune EditorsMarch 31, 2026
19 hours ago
The federal government shed 385,000 employees last year. Now the Trump administration is on a blitz to hire Gen Z workers
Politics
The federal government shed 385,000 employees last year. Now the Trump administration is on a blitz to hire Gen Z workers
By Fortune EditorsMarch 31, 2026
1 day ago
A CEO trying to reindustrialize America says blue-collar pay is headed for 'massive hyperinflation' and kids should skip college to become welders
Success
A CEO trying to reindustrialize America says blue-collar pay is headed for 'massive hyperinflation' and kids should skip college to become welders
By Fortune EditorsMarch 30, 2026
2 days ago
Kevin O'Leary says if you earn $68,000 a year and follow this rule, you'll retire a millionaire
Personal Finance
Kevin O'Leary says if you earn $68,000 a year and follow this rule, you'll retire a millionaire
By Fortune EditorsMarch 31, 2026
18 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.