The AI Fund Behind DeepSeek: How High-Flyer is Shaking Up Tech

High-Flyer, a Chinese hedge fund, built a $13.79 billion portfolio using AI. But in 2023, it shifted focus to creating the next-generation AI model, DeepSeek.

From Hedge Fund to AI Leader

• High-Flyer, officially known as Hangzhou Huanfang Technology Ltd Co., now focuses on Artificial General Intelligence (AGI).
• AGI refers to AI that can perform tasks better than humans, according to OpenAI.
• DeepSeek, the AI model backed by High-Flyer, has shaken global markets with its unexpected capabilities.

DeepSeek’s Impact on Tech Stocks

• DeepSeek’s success caused a global sell-off of AI stocks, as investors feared reduced demand for U.S. AI hardware.
• The startup claims it used less computing power than U.S. rivals to develop its model.

The Nvidia Connection

• High-Flyer has invested heavily in Nvidia chips, creating two AI supercomputing clusters.
• The company purchased 10,000 Nvidia A100 chips before U.S. export bans.
• Some experts believe DeepSeek has access to 50,000 Nvidia H100 chips, despite U.S. restrictions.

Looking Ahead

• High-Flyer’s CEO, Liang Wenfeng, controls 55% of the company and is also DeepSeek’s secretive leader.
• He prioritizes access to advanced chips over raising funds, citing U.S. export restrictions as the biggest challenge.

With DeepSeek’s rise, China’s AI sector is making global waves, and High-Flyer is at the center of this transformation.