2025-01-28
Liang Wenfeng is not your typical
artificial intelligence (AI) pioneer.
Unlike the Silicon Valley entrepreneurs
often associated with breakthroughs in AI, Liang’s roots are firmly planted in
the world of finance.
A graduate of Zhejiang University,
Liang co-founded the quantitative hedge fund High-Flyer in 2015.
His innovative use of AI to predict
market trends and make investment decisions set him apart as a trailblazer in
finance, and his journey took an unexpected turn in 2023 when he launched
DeepSeek—a startup now at the forefront of artificial general intelligence
(AGI) development.
From Hedge Fund Manager to AI Visionary
Liang’s career began with a focus on
applying quantitative methods and AI models to financial markets.
High-Flyer, the hedge fund he
co-founded, quickly gained prominence, managing over $10 billion in assets by
2019.
However, in 2021, Liang’s interests
expanded beyond finance. He began purchasing thousands of Nvidia graphics
processors for what his peers dismissed as a “quirky hobby.”
Liang envisioned building a 10,000-chip
cluster to train advanced AI models, a project that seemed far-fetched at the
time.
“When we first met him, he was this
very nerdy guy with a terrible hairstyle talking about building a 10,000-chip
cluster to train his own models,” one of Liang’s business partners told the Financial
Times.
“We didn’t take him seriously. He
couldn’t articulate his vision other than saying: ‘I want to build this, and it
will be a game-changer.’”
Despite skepticism, Liang persisted.
In 2023, he officially launched
DeepSeek, aiming to create AGI—AI capable of matching or surpassing human
intelligence. What began as a side project now threatens to upend global
markets.
Disrupting U.S. Stocks: DeepSeek’s
Meteoric Rise
DeepSeek’s rapid development has sent
shockwaves through the financial world, particularly in the U.S.
The startup’s ability to create
cutting-edge AI at a fraction of the cost of its competitors—like OpenAI and
Google—has raised questions about the sustainability of the billions of dollars
being poured into the AI sector.
On Monday, Nvidia shares fell 17%,
sparking a broader selloff that saw the Nasdaq drop 3% and the S&P 500
decline by 1.8%.
The AI-fueled rally in U.S. stocks,
driven by the so-called “Magnificent Seven” tech giants, appears to be losing
steam.
DeepSeek’s impact extends beyond
technology stocks.
Companies like Constellation Energy,
which benefited from the demand for electricity from AI data centers, also
suffered 20% lost after the market closed on January 27, 2024.
DeepSeek’s cost-efficient AI
development has shifted the competitive landscape, calling into question the
future dominance of U.S. firms in the AI race.
Building a Homegrown AI Leader
Liang is deeply involved in DeepSeek’s
operations and research, personally overseeing its direction and recruiting top
talent from leading Chinese universities.
By offering competitive salaries, he
has attracted experts typically courted by major players like ByteDance and
Alibaba.
In a 2024 interview with Waves,
republished by the China Academy, Liang outlined his vision for DeepSeek and
China’s broader AI strategy.
“For years, Chinese companies have been
accustomed to leveraging technological innovations developed elsewhere and
monetizing them through applications,” he said. “But this isn’t sustainable.
This time, our goal isn’t quick profits but advancing the technological
frontier to drive ecosystem growth.”
Liang emphasized that China no longer
lacks the capital to innovate but rather the confidence and organizational
capacity to harness its talent effectively.
DeepSeek’s open-source approach
reflects his belief that sharing breakthroughs fosters collaboration and
attracts top-tier talent.
“Adopting a closed-source model won’t
prevent competitors from catching up,” Liang noted. “Our real moat lies in our
team’s growth—accumulating know-how, fostering an innovative culture.
Open-source is cultural, not just commercial. Giving back is an honor, and it
attracts talent.”
Innovation Through Collaboration
DeepSeek’s culture of innovation sets
it apart. Liang has built a company where creativity and collaboration thrive.
Employees operate in a flat hierarchy,
allowing ideas to emerge organically before resources are allocated from the
top down.
Access to computing resources and
training clusters is unrestricted, empowering employees to experiment and
innovate freely.
Liang describes DeepSeek as a
“bottom-up company” where a natural division of labor arises without rigid
roles.
He encourages open collaboration,
ensuring that even meeting spaces are designed to foster spontaneous exchanges
of ideas. This flexible structure has allowed DeepSeek to advance rapidly, with
its latest model, DeepSeek-R1, reportedly outperforming rivals while using far
fewer resources.
A New Era for AI and Global Competition
DeepSeek’s ascent highlights the
shifting dynamics of the global AI landscape. Traditionally dominated by U.S.
companies, the field now faces significant challenges from Chinese innovators
like Liang Wenfeng.
By prioritizing foundational research
and long-term growth over immediate profits, Liang is reshaping the AI development.
