DeepSeek, which started as a finance-focused hedge fund, has rapidly ascended to AI stardom with a powerful and cost-efficient model.
Just when Silicon Valley giants OpenAI and Google thought there was no match for their dominance in the artificial intelligence landscape, a Chinese start-up came as an unexpected disruptor. DeepSeek, which started as a finance-focused hedge fund, is suddenly a force to reckon with - because its AI model is powerful, efficient and most importantly affordable.
Finance to AI
DeepSeek's journey began in the financial sector under its parent company, High-Flyer, a hedge fund specialising in quantitative trading. Unlike traditional AI research firms, DeepSeek's initial focus was leveraging machine learning to analyse China's volatile stock market. But regulatory crackdowns in 2021 compelled it to pivot away from speculative trading and step into the AI space.
By prioritising research over commercial fanfare, DeepSeek developed an AI model that claims to rival OpenAI's offerings but at a fraction of the cost. The firm reportedly trained its model for just $6 million, significantly lower than the estimated $100 million expenditure behind OpenAI's GPT-4.
Rise of DeepSeek
DeepSeek's new AI assistant, launched on January 20, quickly became the most downloaded free app on Apple's App Store. The AI is optimised for tasks like math and coding, making it a strong competitor in the AI space.
Unlike many Western models, DeepSeek follows China's strict censorship rules. When asked about sensitive topics, it avoids direct answers, reflecting government control over digital content. Despite this, experts praise its efficiency, as it uses advanced and lower-grade chips to deliver high performance at a lower cost.
DeepSeek's vision
DeepSeek's founder, Liang Wenfeng, a Zhejiang University graduate with a background in electronic engineering and computer science, built his reputation in the finance sector before venturing to AI. He has been vocal about China's need to innovate rather than imitate, claiming that the real gap between Chinese and American AI lies in originality.
His ambitions align with Chinese President Xi Jinping's push to make AI a national priority.
Global reactions
DeepSeek's rise has not gone unnoticed by global markets and policymakers. The launch of its AI assistant coincided with a historic $600 billion market value drop for Nvidia, a key player in AI chip production. The US government's ongoing restrictions on advanced chip exports to China have raised concerns about Beijing's technological independence, yet DeepSeek's success suggests that China is rapidly advancing despite these barriers.
Even US President Donald Trump acknowledged the development, calling it a "wake-up call" for American tech firms. Australia's science minister, Ed Husic, has warned about potential security risks associated with the app, pointing out the need for scrutiny in data privacy and AI ethics.
A SEISMIC SHIFT IN AI
Two years ago, when big-name Chinese technology companies like Baidu and Alibaba were chasing Silicon Valley’s advances in artificial intelligence with splashy announcements and new chatbots, DeepSeek took a different approach. It zeroed in on research.
The strategy paid off.
The Chinese start-up has jolted the tech world with its claim that it created a powerful A.I. model that was significantly cheaper to build than the offerings of its better-funded American rivals.
How DeepSeek Went From Stock Trader to A.I. Star
China’s DeepSeek shakes United States tech and energy markets
3 Feb 2025FOUNDED just 20 months ago in China, artificial intelligence startup DeepSeek has demonstrated the inaccuracy of performance metrics touted by tech giants, causing a seismic shift in the market value of leading technology and energy companies in the United States.
Utilizing open-source software, the Chinese startup has achieved highly efficient results that have reshaped industry expectations and created a ripple effect by erasing some $2 trillion worth of market cap in U.S. stocks this week.
DeepSeek’s AI model has sent shock waves through the market valuations of American tech and energy behemoths. The secret to their success lies in an AI model that delivers superior results using less computational power and reduced energy consumption.
DeepSeek’s highly efficient AI model has led to significant declines in the market valuations of U.S.-based technology, software and energy companies. Particularly in the energy sector, shares of natural gas producers, power plant owners, and coal and uranium miners have seen notable drops. This development has triggered a reevaluation of expectations concerning the high energy demands of AI development.
In the technology sector, companies like Nvidia, which have made substantial investments in AI infrastructure, saw their shares fall by up to 17%, contributing to a collective market value loss of around $2 trillion on U.S. stock exchanges. While giants like Nvidia and energy companies reel, companies like Apple and Meta Platforms that can integrate AI at a lower cost have found new opportunities.
This shift has significantly altered future projections related to AI infrastructure and energy consumption.
Conversely, technology giants such as Apple and Meta have gained value due to lower capital expenditures and increased dividend expectations.
The market has viewed the adoption of cheaper AI models as a positive development. In summary, DeepSeek’s innovative AI model has caused billions of dollars in market fluctuations within the energy and technology sectors. Despite being founded in 2023, DeepSeek’s impact by 2025 has been profound, particularly on hardware, software and energy companies.
The startup’s efficient AI model has reduced the need for high-cost infrastructure, causing significant market turbulence. Just as Microsoft’s cloud credits have provided ChatGPT creator OpenAI with the necessary computing power and infrastructure to train large language models, the support from the High-Flyer hedge fund has played a similar role for DeepSeek.
Microsoft’s support came through cloud infrastructure, Azure, enabling OpenAI to train its large models on Microsoft’s servers. High-Flyer’s support for DeepSeek, on the other hand, has primarily been through capital and stockpiles of GPUs.
DeepSeek’s supercomputers were built using GPUs accumulated over the years by the hedge fund. While Microsoft entered into a commercial partnership with OpenAI, integrating AI services into its products (Office 365, Azure AI, etc.), there has been no such direct commercial integration between High-Flyer and DeepSeek.
The hedge fund supported DeepSeek believing in longterm AI research, while Microsoft aims to recoup its investment by selling commercial AI products. It’s unclear what kind of return High-Flyer expects from DeepSeek, but quantitative finance and AI integration could be considered.
Microsoft’s cloud credits for OpenAI provided the computing power needed for AI model development, while HighFlyer’s financial and hardware support similarly helped establish a strong infrastructure for DeepSeek.
However, Microsoft’s commercial goals are clearer, whereas High-Flyer’s economic benefits from DeepSeek remain uncertain.
Training and tech support: Empowering women entrepreneurs in quake-hit Hatay Türk Telekom has utilized its technology and education expertise as part of the Türkiye leg of the global program jointly executed by the United Nations Women and Nokia, aimed at enhancing women’s tech access and developing their entrepreneurial skills.
Under the banner “Move for Entrepreneurship,” the program, held in Hatay, one of the southeastern provinces struck by the devastating February 2023 earthquakes, focused on offering training in financial literacy and digital marketing to women entrepreneurs affected by the disaster.
It sought to boost women’s entrepreneurial skills, integrate them more effectively into the business world, provide solutions tailored to local needs and support sustainable development goals.
Türk Telekom joined the global program, which is being conducted in eight different countries by Nokia and U.N. Women, to support women’s economic independence and entrepreneurship skills in Türkiye.
In Hatay, 27 women entrepreneurs from nine local women’s cooperatives participated in the training sessions. Volunteers from Nokia and Türk Telekom provided a total of 20 hours of training, covering practical and skill-building content in areas such as financial and digital literacy, cybersecurity, marketing, project management and supply chain management.
Zeynep Özden, deputy general manager in charge of marketing and customer experience at TürkTelekom, said while pioneering the digital transformation of Türkiye, the company also takes it as its duty to support social development.
“Empowering women with technology is one of the keys to economic development. The digital world offers limitless opportunities for women entrepreneurs, and we strive to support their strong presence in the business world, using technology as a source of transformation and progress,” said Özden.
“With the ‘Move for Entrepreneurship’ program, we are contributing to increasing the entrepreneurial skills of women’s cooperatives affected by the earthquake in Hatay by providing technology and education support.
FOUNDED just 20 months ago in China, artificial intelligence startup DeepSeek has demonstrated the inaccuracy of performance metrics touted by tech giants, causing a seismic shift in the market value of leading technology and energy companies in the United States.
Utilizing open-source software, the Chinese startup has achieved highly efficient results that have reshaped industry expectations and created a ripple effect by erasing some $2 trillion worth of market cap in U.S. stocks this week.
DeepSeek’s AI model has sent shock waves through the market valuations of American tech and energy behemoths. The secret to their success lies in an AI model that delivers superior results using less computational power and reduced energy consumption.
DeepSeek’s highly efficient AI model has led to significant declines in the market valuations of U.S.-based technology, software and energy companies. Particularly in the energy sector, shares of natural gas producers, power plant owners, and coal and uranium miners have seen notable drops. This development has triggered a reevaluation of expectations concerning the high energy demands of AI development.
In the technology sector, companies like Nvidia, which have made substantial investments in AI infrastructure, saw their shares fall by up to 17%, contributing to a collective market value loss of around $2 trillion on U.S. stock exchanges. While giants like Nvidia and energy companies reel, companies like Apple and Meta Platforms that can integrate AI at a lower cost have found new opportunities.
This shift has significantly altered future projections related to AI infrastructure and energy consumption.
Conversely, technology giants such as Apple and Meta have gained value due to lower capital expenditures and increased dividend expectations.
The market has viewed the adoption of cheaper AI models as a positive development. In summary, DeepSeek’s innovative AI model has caused billions of dollars in market fluctuations within the energy and technology sectors. Despite being founded in 2023, DeepSeek’s impact by 2025 has been profound, particularly on hardware, software and energy companies.
The startup’s efficient AI model has reduced the need for high-cost infrastructure, causing significant market turbulence. Just as Microsoft’s cloud credits have provided ChatGPT creator OpenAI with the necessary computing power and infrastructure to train large language models, the support from the High-Flyer hedge fund has played a similar role for DeepSeek.
Microsoft’s support came through cloud infrastructure, Azure, enabling OpenAI to train its large models on Microsoft’s servers. High-Flyer’s support for DeepSeek, on the other hand, has primarily been through capital and stockpiles of GPUs.
DeepSeek’s supercomputers were built using GPUs accumulated over the years by the hedge fund. While Microsoft entered into a commercial partnership with OpenAI, integrating AI services into its products (Office 365, Azure AI, etc.), there has been no such direct commercial integration between High-Flyer and DeepSeek.
The hedge fund supported DeepSeek believing in longterm AI research, while Microsoft aims to recoup its investment by selling commercial AI products. It’s unclear what kind of return High-Flyer expects from DeepSeek, but quantitative finance and AI integration could be considered.
Microsoft’s cloud credits for OpenAI provided the computing power needed for AI model development, while HighFlyer’s financial and hardware support similarly helped establish a strong infrastructure for DeepSeek.
However, Microsoft’s commercial goals are clearer, whereas High-Flyer’s economic benefits from DeepSeek remain uncertain.
Training and tech support: Empowering women entrepreneurs in quake-hit Hatay Türk Telekom has utilized its technology and education expertise as part of the Türkiye leg of the global program jointly executed by the United Nations Women and Nokia, aimed at enhancing women’s tech access and developing their entrepreneurial skills.
Under the banner “Move for Entrepreneurship,” the program, held in Hatay, one of the southeastern provinces struck by the devastating February 2023 earthquakes, focused on offering training in financial literacy and digital marketing to women entrepreneurs affected by the disaster.
It sought to boost women’s entrepreneurial skills, integrate them more effectively into the business world, provide solutions tailored to local needs and support sustainable development goals.
Türk Telekom joined the global program, which is being conducted in eight different countries by Nokia and U.N. Women, to support women’s economic independence and entrepreneurship skills in Türkiye.
In Hatay, 27 women entrepreneurs from nine local women’s cooperatives participated in the training sessions. Volunteers from Nokia and Türk Telekom provided a total of 20 hours of training, covering practical and skill-building content in areas such as financial and digital literacy, cybersecurity, marketing, project management and supply chain management.
Zeynep Özden, deputy general manager in charge of marketing and customer experience at TürkTelekom, said while pioneering the digital transformation of Türkiye, the company also takes it as its duty to support social development.
“Empowering women with technology is one of the keys to economic development. The digital world offers limitless opportunities for women entrepreneurs, and we strive to support their strong presence in the business world, using technology as a source of transformation and progress,” said Özden.
“With the ‘Move for Entrepreneurship’ program, we are contributing to increasing the entrepreneurial skills of women’s cooperatives affected by the earthquake in Hatay by providing technology and education support.
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