Tencent unveils advanced AI model, claiming faster responses than DeepSeek R1

On Thursday, Chinese tech giant Tencent launched its latest AI model, Hunyuan Turbo S. It claims it can answer questions faster than the global hit DeepSeek R1. The launch comes as Tencent and other major Chinese companies face increased pressure from emerging startups gaining traction at home and abroad.

As per Tencent , Hunyuan Turbo S delivers responses in under one second, unlike other models, such as DeepSeek R1 and Hunyuan T1, which take longer to process before providing answers.

In tests spanning knowledge, math, and reasoning, Hunyuan Turbo S performed similarly to DeepSeek-V3, the model used in DeepSeek’s chatbot, which has outperformed OpenAI’s ChatGPT in app store downloads, Tencent said.

DeepSeek did not immediately reply to a request for comment. However, competition has increased with the success of DeepSeek’s R1 and V3 models, the first widely embraced and adopted contributions from a Chinese firm in Silicon Valley. 

Chinese technology giants like Tencent are racing to roll out enhanced AI models in response, initially rushing the battle after OpenAI unveiled ChatGPT in late 2022.

DeepSeek ignites AI arms race as rivals roll out upgraded models

DeepSeek R1 and V3 managed to massively shake the whole global AI ecosystem, triggering rapid action by competitors. Shortly after its debut, Alibaba introduced its Qwen 2.5-Max model, claiming it outperformed DeepSeek-V3 across all metrics.

Next up was ByteDance, which debuted an improved version of Doubao AI, followed by Baidu launching Ernie 5.0—each model aiming to take DeepSeek down a peg.

Amid growing competition, Tencent noted that its fresh Hunyuan Turbo S has significantly lower operational costs than its previous models. This shift is symptomatic of the deep impact OpenAI’s open-source , low-cost approach has had on China’s AI landscape. 

DeepSeek’s relatively cheap and easy-to-access models have prompted major Chinese tech firms (e.g., Tencent, Alibaba, ByteDance, Baidu) to rapid development and pricing iterations to remain competitive.

China’s rapid deployment of the AI models contradicts previous reports that the country was six months behind the United States in AI development and creates further competition in the global AI arms race.

President Trump announced the $500 billion “Stargate” AI infrastructure initiative in January, which featured investments from OpenAI, the tech company Oracle, and SoftBank. The president said that the project would include constructing AI and high-performance computing data centers in the United States, creating 100,000 jobs.

United Kingdom Prime Minister Keir Starmer announced similar plans to develop AI infrastructure in the country in January, including fast-tracking the development of data centres to remain competitive on the global stage.

Fierce AI competition sparks pricing and performance battles

As we race toward the next big AI breakthrough, driven by improved access to data, training, and computing, performance alone is no longer the sole focus.; it’s also about cost and accessibility.  

DeepSeek’s open-source, low-cost models have disrupted the market, forcing competitors to rethink their pricing strategies. Tencent’s latest announcement highlights the growing emphasis on cost-effective AI models, a shift that is reshaping industry dynamics.

Meanwhile, American tech titans are doubling down on innovation. OpenAI is iterating on its GPT-4, Google is growing the reach of its Gemini AI ecosystem, and Microsoft is pushing AI deeper into its enterprise software. Companies are testing out subscription models, enterprise licensing, and free-tier offerings to lure in users in a highly competitive landscape.

The incredible speed at which these models pop out one after another suggests that organizations are getting ready for shorter product cycles, where model refreshes occur every few months. Experts also expect AI to become more multimodal (able to process text, images, and audio simultaneously) and to improve reasoning, scientific discovery, and automation, among other fields.  

As AI permeates more of everyday life, concerns about governance, misinformation, and economic upheaval are rising. Governments and regulators across the globe are clamoring for strict oversight, to balance innovation with ethics.

For now, the AI arms race continues with scant evidence of restraint as tech companies worldwide brawl to win the next frontier in artificial intelligence.

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