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Good morning, AI enthusiasts. DeepSeek just dropped two models that match GPT-5 and Gemini-3 Pro across multiple benchmarks and they did it at a fraction of the cost.
With China now leading open AI model downloads at 17% versus America's 15.8%, the gap between open and closed AI is closing faster than anyone expected.
In today's recap:
DeepSeek debuts gold-level reasoning models
Australia rolls out national AI roadmap
China overtakes US in open AI downloads
New AI tools & prompts
DEEPSEEK
DeepSeek debuts V3.2 reasoning models
DeepSeek/Screenshot
Recaply: DeepSeek just launched DeepSeek-V3.2 and DeepSeek-V3.2-Speciale, according to Bloomberg, with the models matching GPT-5 and Gemini-3 Pro performance respectively across multiple reasoning benchmarks while integrating thinking directly into tool use.
Key details:
V3.2 combines human-like reasoning with tool capabilities like search engines, calculators, and code executors, supporting both thinking and non-thinking modes through a new agent training data synthesis method.
The models employ DeepSeek Sparse Attention (DSA) to reduce computational complexity while preserving long-context performance, allocating over 10% of pre-training costs to post-training compute.
DeepSeek-V3.2-Speciale achieved gold-medal performance in the 2025 International Math Olympiad, International Olympiad on Informatics, ICPC World Finals, and China Mathematical Olympiad without targeted training for competitions.
V3.2 is available now on app, web, and API, while V3.2-Speciale remains API-only through December 15th to support community evaluation and research before broader release.
Why it matters: Open source AI models have been a hot topic over the past year, with Meta, OpenAI, and now DeepSeek all pushing advanced capabilities. While closed-source models from Google and OpenAI have been pulling ahead, DeepSeek's cost-efficient approach (matching GPT-5 performance while using a fraction of the resources) may bring new competitive pressure to an area still defining the economics of frontier AI development.
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AUSTRALIA & AI GOVERNANCE
Australia releases National AI Plan
Reuters
Recaply: Australia's federal government released its National AI Plan aiming to harness economic benefits while managing risks, committing $29.9 million to establish an AI Safety Institute in 2026 for official monitoring and regulatory support.
Key details:
The plan outlines government integration of AI through the secure GovAI platform across agencies, piloting generative AI in schools and strengthening digital skills for public service employees to create consistent services.
The government aims to accelerate investment in supporting infrastructure like data centers, positioning Australia to lead in ethical standards and secure technologies aligned with national priorities and social interests.
The Australian Academy of Technological Sciences and Engineering warned in November that the nation could miss out on a $150 billion economic boost without investment in sovereign modeling, regional hubs, training, and infrastructure.
The plan stresses that benefits must be shared broadly including across regional and disadvantaged communities, with Industry Minister Tim Ayres saying it ensures technology serves Australians rather than the other way around.
Why it matters: The $150 billion opportunity marks one of the largest economic shifts facing developed nations navigating AI deployment. Countries are racing to balance innovation with safety, and Australia's focus on broad benefit distribution and local capability building shows the infrastructure and ethics approach needed. The question is whether $29.9 million for a safety institute proves sufficient when competitors are spending billions on similar frameworks.
US & CHINA
China overtakes US in open AI downloads
Screenshot
Recaply: China surpassed the US in global downloads of open AI models for the first time, capturing 17% market share compared to America's 15.8%, according to MIT and Hugging Face research.
Key details:
DeepSeek and Alibaba's Qwen models account for the vast majority of Chinese downloads, with developers choosing them for integration into products and research improvements across global markets.
China's 17% download share edges out the US at 15.8%, marking the first time Chinese developers have beaten American counterparts like Google, Meta, and OpenAI in open model adoption.
MIT researchers noted open source has been "sort of a more mainstream trend" in China than the US, where companies prefer closed models with high valuations and subscription revenue.
The shift follows DeepSeek's R1 release earlier this year, which matched US competitor performance while using a fraction of the cost and computing power.
Why it matters: Open models determine how AI's future gets built, and China just took the lead. While OpenAI, Google, and Anthropic profit from closed subscriptions, Chinese groups cut off from Nvidia chips are winning influence by releasing free models developers actually use. The Trump administration's push for American open source models with "American values" suggests Washington sees the strategic risk, but catching up means convincing profit-focused companies to give away their competitive edge.
TOGETHER WITH ROKU
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Read the guide to get your CTV campaign live in time for the holiday rush.
NEWS
What Matters in AI Right Now?
Runway released Gen-4.5, the top-rated video model with 1,247 Elo points, maintaining Gen-4 speed while improving physics and visual fidelity.
Simular AI launched Simular 1.0, a desktop agent performing multi-step tasks across applications, achieving 69.9% success rate on OSWorld benchmark.
Google expanded Gemini 3 Pro and Nano Banana Pro to AI Mode in 120 countries for Pro and Ultra subscribers.
HSBC partnered with Mistral AI in multi-year agreement to deploy generative AI across banking operations, enhancing productivity and customer service globally.
Zhipu AI launched AutoGLM Rumination for free, an agent powered by GLM-Z1-Air running 8x faster than DeepSeek R1 with one-thirtieth computing resources.
Nvidia released Alpamayo-R1, the first open reasoning vision language action model for autonomous driving, integrating chain-of-thought reasoning with path planning.
Arcee AI introduced Trinity-Mini, a 26B parameter open-source reasoning model trained in the US, with API pricing at $0.045 per million input tokens.
TOOLS
Trending AI Tools
🎬 Runway Gen-4.5: Top-rated AI video model with cinematic quality.
🧠 DeepSeek-V3.2: Open reasoning model matching GPT-5 performance.
🎨 Kling O1: Multimodal AI engine turning any input into visuals.
🏆 DeepSeek-V3.2-Speciale: Gold-level reasoning for math and coding.
* Some links in this newsletter may be from sponsors or affiliates. We may get paid if you buy something through these links.
PROMPTS
The Summarize and Extract
Prompt: Summarize the following text in [number] concise bullet points. Additionally, identify [number] key actionable takeaways that a [target audience] could implement immediately. The text is: [paste text]
Source: r/PromptCentral🧡 Enjoyed this issue?
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Cheers, Jason
