Chinese AI startup DeepSeek has announced that its new model V3.1 utilizes an "UE8M0 FP8" precision format, optimized for upcoming domestic AI chips. This aligns with China's push for self-sufficiency amid U.S. export restrictions. DeepSeek's advancements, such as faster response times and a hybrid reasoning architecture, come as Beijing encourages local developers to use domestic alternatives to Nvidia's GPUs. Starting September 6, usage fees for DeepSeek's API will be adjusted.