Human ingenuity (HI) from Chinese amateurs outsmarted U.S. artificial intelligence experts and in the process, on January 27, 2025, the U.S. tech companies lost $1 trillion on Wall Street, with chipmaker Nvidia being the biggest loser (it regained 8.9 percent the following day).
All this commotion was caused by DeepSeek, an AI startup created by 40-year-old hedge fund manager Liang Wenfeng, who favored young inexperienced engineers to create an AI tool that required less-advanced chips. “Experience,” he was quoted saying, “is a potential obstacle.”
DeepSeek’s AI is “open source,” meaning anyone can access it, and it requires fewer investments to train it ($6 million compared with the $100 million to $1 billion for the U.S. models).
However, DeepSeek has incorporated some American ingenuity by utilizing Nvidia chips, and the teaching of American finance investor Jim Simon, the pioneer of quantitive investing. Liang even wrote the preface for a Chinese edition of a Simon’s biography.
Leave A Comment