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Cost Reduction News 30 September 2025

China’s DeepSeek Unveils AI Model Halving Costs by 50% – The ‘Sparse Attention’ Revolution

China’s DeepSeek Unveils AI Model Halving Costs by 50% – The ‘Sparse Attention’ Revolution

DeepSeek’s New V3.2-Exp Model Hangzhou-based DeepSeek burst onto the AI scene earlier in 2025 with its R1 model (a heavily RL-trained chatbot) techcrunch.com. This time, DeepSeek’s announcement focuses on efficiency. On Sept. 29 the company published a post (on Hugging Face) unveiling DeepSeek-V3.2-Exp, an experimental large language model built on its V3 series techcrunch.com techcrunch.com. According to DeepSeek, V3.2-Exp maintains similar reasoning performance to V3.1 but uses far less compute for long inputs. The key innovation is a “DeepSeek Sparse Attention” (DSA) mechanism: rather than comparing every token to every other in a long document (the dense attention used by
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