Jan 27 (Reuters) - DeepSeek's new open-source AI model

surpassed Stability AI and Microsoft ( MSFT )-backed OpenAI's

models in benchmarks for image generation, the Chinese startup

said in a technical report on Monday.

The company said its Janus-Pro-7B AI model outperformed

OpenAI's DALL-E 3 and Stability AI's Stable Diffusion in a

leaderboard ranking for image generation using text prompts.

The new model is an upgrade over Janus, which was launched

late last year and comes on the heels of DeepSeek launching a

new assistant based on the DeepSeek-V3 model that has become the

top-rated free application on Apple's App Store in the United

States.

Tech stocks such as Nvidia ( NVDA ) and Oracle

plummeted on Monday after the China-based company said its

DeepSeek-V3 model topped the leaderboard for open-source models.

DeepSeek's technical report said the new model improves upon

Janus by upgrading its training processes, data quality, and

model size, resulting in better image stability and richer

details.

Janus-Pro achieved more visually appealing and stable image

outputs by adding 72 million high-quality synthetic images and

balancing them with real-world data, the report added.

The startup added that its larger model version, with up to

7 billion parameters, improved training speed and accuracy in

text-to-image generation and task comprehension.

OpenAI and Stability AI did not immediately respond to

requests for comment.