DeepSeek itself is accelerating the launch of the successor to the R1 model that put the startup on the map last month, three people familiar with the company told Reuters.
R2 is likely to worry the U.S. government which regards AI leadership as a national priority.
That country's technology war with China is set to intensify with the administration of President Donald Trump planning tougher restrictions on semiconductor exports to China.
Trump has already signed a memorandum restricting Chinese investment in the U.S. in strategic areas.