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.
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