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AI Daily Brief — 28 May 2025

One of the biggest single-day open-source + earnings combinations of the year. DeepSeek’s R1-0528 closed much of the open-source reasoning gap to OpenAI o3 and Gemini 2.5 Pro. NVIDIA printed $44.1B with Blackwell at 70% of compute sales and acknowledged a $4.5B H20 hit. xAI tried to land a 1B-user Telegram distribution deal — terms contested within hours.

Top stories

  • DeepSeek releases R1-0528 with major reasoning gains. ‘Minor upgrade’ delivers substantial reasoning improvements via increased compute and post-training. AIME 2025 pass@1 jumped from 70% to 87.5% (near OpenAI o3’s 88.9%, ahead of Gemini 2.5 Pro at 83%); AIME 2024 went 79.8% to 91.4%. Average tokens-per-question on AIME climbed from ~12K to ~23K (deeper chain-of-thought). Added JSON output and function calling; hallucinations down 45-50% on rewriting/summarization. via Hugging Face
  • DeepSeek-R1-0528-Qwen3-8B distill released MIT-licensed. Distilled by post-training Qwen3-8B-Base on R1-0528 chains-of-thought. SOTA among open-source models on AIME 2024, beating base Qwen3-8B by +10.0% and matching Qwen3-235B-thinking. Code + weights MIT-licensed. via Hugging Face
  • R1-0528 sweeps LiveCodeBench and GPQA-Diamond. LiveCodeBench pass@1 from 63.5% to 73.3% (+9.8); GPQA-Diamond from 71.5% to 81.0% (+9.5). VentureBeat framed it as a credible open-source challenge to OpenAI o3 and Gemini 2.5 Pro. via VentureBeat
  • NVIDIA Q1 FY26: $44.1B revenue, +69% YoY. Quarter ended April 27. Up 12% sequential. Beat consensus. Stock rose ~6% extended. Jensen: ‘Grace Blackwell is in full production’ and called this ‘the start of a powerful new wave of growth.’ Reasoning AI driving step-function inference demand. via NVIDIA
  • Data Center hits $39.1B; Blackwell ~70% of compute sales. +10% QoQ, +73% YoY. Hopper-to-Blackwell transition nearing completion. Large CSPs ~just under 50% of Data Center revenue; Blackwell ramp expanded to all customer categories.
  • $4.5B H20 charge and $2.5B in lost China shipments. Booked for excess inventory and purchase obligations after the April 9 license requirement. H20 sales totaled $4.6B in Q1 before the new rules; another $2.5B unshippable in the quarter. Charge below the $5.5B initially flagged in April. via TechCrunch
  • NVIDIA Q2 FY26 guidance: $45B revenue midpoint. ±2%, incorporating ~$8B H20 China headwind. Jensen listed reasoning AI demand as the top of four upside surprises since the start of the year.
  • xAI to pay Telegram $300M (cash + equity) to ship Grok in-app. Telegram CEO Pavel Durov announced a one-year partnership distributing Grok across Telegram’s user base, with xAI paying $300M cash + equity plus a 50% revenue share on Grok subscriptions sold via the app. Musk responded on X that ‘no deal has been signed’ — terms publicly contested. via TechCrunch
  • Jensen at Computex: Vera Rubin ‘largest product launch in Taiwan’s history.’ Hosted 30+ CEOs at the Brick Kiln restaurant. Vera Rubin systems contain ~2 million parts and 150 Taiwanese ecosystem partners. NVIDIA unveiled CGI of ‘Constellation,’ a new Taiwan office.

Who shipped

DeepSeek ran the open-source day with R1-0528 and the MIT distill. NVIDIA ran the macro day with the print + Q2 guide + Computex anchor.

Open-source pulse

R1-0528 + the MIT-licensed Qwen3-8B distill are the day’s open contributions. Combined, they put open-source reasoning within striking distance of OpenAI’s o3 and Anthropic’s Claude 4 family on math and code benchmarks.

Money, infra & hardware

The combination of $4.5B writedown + $2.5B unshippable revenue + $8B Q2 China headwind puts NVIDIA’s H20 China business at roughly $15B in cumulative impact, even as the rest of Data Center accelerated.

Quiet corners

No major OpenAI, Anthropic, Google or Meta release dated May 28. Perplexity Labs and BFL FLUX.1 Kontext were teased ahead of next-day launches.

By the numbers

  • 87.5% / 91.4% / 73.3% / 81.0% — R1-0528 AIME 2025 / AIME 2024 / LiveCodeBench / GPQA-Diamond
  • +10.0% — Qwen3-8B distill AIME 2024 lift
  • $44.1B / +69% / +73% — NVIDIA Q1 total / YoY / Data Center YoY
  • ~70% — Blackwell share of compute sales
  • $4.5B / $2.5B / $8B — H20 charge / Q1 unshipped / Q2 headwind
  • $45B ±2% — NVIDIA Q2 guidance
  • $300M + 50% — xAI-Telegram (contested) cash+equity + rev share
  • Most-mentioned company: NVIDIA

Compiled by AI Feed’s editor from verified web sources for 28 May 2025.