Core Viewpoint - The launch of DeepSeek V3.1 has generated significant excitement in the AI community due to its innovative architecture and the introduction of a new generation of domestic chips, which may reduce reliance on foreign computing power [1][2]. Group 1: Product Innovation - The most revolutionary feature of DeepSeek V3.1 is its Hybrid Reasoning Architecture, which allows users to switch between thinking and non-thinking modes, enhancing flexibility and efficiency in usage [6]. - The new model integrates various core functions such as general dialogue, complex reasoning, and professional programming into a single model, improving user experience and operational efficiency [9]. - The reasoning efficiency of V3.1 has significantly improved, with a reported reduction in output token count by 20% to 50% in thinking mode compared to the previous top model [9][10]. Group 2: Cost Efficiency - The "thinking chain compression" technique allows the model to generate more concise and efficient reasoning paths, reducing computational costs and API call expenses, making it more viable for large-scale commercial applications [10]. - Community tests indicate that DeepSeek V3.1 outperformed Claude 4 Opus in multi-language programming tests while being more cost-effective [10]. Group 3: Technical Specifications - DeepSeek V3.1 utilizes UE8M0 FP8 Scale parameter precision, which compresses standard floating-point numbers into 8 bits, optimizing space and computing power [13][15]. - The MXFP8 block scaling approach allows for efficient data processing without significant information loss, making it suitable for next-generation domestic chips [15][16]. - The compatibility of UE8M0 FP8 with new domestic chips like Moore Threads MUSA 3.1 GPU and Chipone VIP9000 NPU enhances performance while maintaining precision [16]. Group 4: Market Reaction - Following the announcement of DeepSeek V3.1, domestic chip concept stocks surged, with Daily Interaction seeing a closing increase of 13.62% [2][3]. - The overall market index rose to 3800 points, reflecting strong investor sentiment towards the advancements in domestic AI technology [3].