OpenAI rolled out a new, lightweight artificial intelligence model that it said is capable of humanlike reasoning and makes gains on efficiency — a product that will be closely watched following the release of an open-source model from China’s DeepSeek.

DeepSeek built top-performing AI models using less-advanced chips at what it says is a fraction of the cost of rivals such as OpenAI.

OpenAI—which faces multiple lawsuits for using content without permission—accuses DeepSeek of 'distillation,' a technique that use larger models' outputs to improve smaller ones.