AI & Enterprise
DeepSeek-R1 hallucination rate quadruples versus V3 after stronger reasoning
China AI startup DeepSeek\'s latest reasoning model, DeepSeek-R1, recorded a much higher hallucination rate than its previous model, according to an evaluation by Vectara using the HHEM 2.1 benchmark. DeepSeek-R1 logged a 14.3 percent hallucination rate, about four times DeepSeek-V3\'s 3.9 percent. Vectara said cross-checks using Google\'s FACTS methodology showed a stronger tendency to add unsupported information, a concern as AI agent tokens automate crypto analysis and trading.