Summarize this content to 2000 words in 6 paragraphs in Arabic One of the pack of Chinese AI hopefuls trying to take on the likes of OpenAI comes from an unusual source: a quant fund dominating the country\u2019s financial sector.High-Flyer Capital Management, a Chinese quantitative hedge fund, has grown into a roughly Rmb60bn ($8bn) asset manager since its launch in 2015, partly using AI and algorithms to identify patterns or variables that could affect stock prices.Now it has parlayed that knowledge and infrastructure into a powerful AI model that has been released and that experts say is on a par with leading western efforts. DeepSeek-V2 can answer questions, write code and reason.DeepSeek costs significantly less than rivals, about Rmb2 for every million output tokens \u2014 or words returned per query \u2014 sparking a price war among Chinese artificial intelligence providers.A week after its launch in May, technology giant ByteDance cut prices to as low as Rmb0.60 per million output tokens. Rival Alibaba then cut usage prices for some of its models by as much as 97 per cent and Baidu made two of its Ernie models free.The rollout of the new model, which has quickly attracted thousands of Chinese developers, highlights how even with early leads in generative AI, tech giants such as Baidu and Alibaba face fierce competition from more nimble upstarts. It has also put the spotlight on China\u2019s highly competitive generative AI race.\u201cThe gap between the US and China isn\u2019t as big as everyone thinks,\u201d Liu Qingfeng, founder of Chinese AI group iFlytek, told a recent tech gathering in Macau. \u201cIn a lot of verticals our [models] are better than theirs.\u201dDeepSeek\u2019s development is fuelled with funding from its sister hedge fund High-Flyer. Its funds have returned 151 per cent, or 13 per cent annualised, since 2017, and were achieved in China\u2019s battered domestic stock market. The country\u2019s benchmark CSI 300 index, which tracks China\u2019s top 300 stocks, has risen 8 per cent over the same time period, according to research provider Simu Paipai.In February, Beijing cracked down on quant funds, blaming a stock market sell-off at the start of the year on their high-speed algorithmic trading. Since then, High-Flyer\u2019s funds have trailed the CSI 300 by four percentage points.High-Flyer and DeepSeek did not respond to requests for comment.The quant fund got its start in a Chengdu apartment, where founder Liang Wenfeng, a computer science graduate of Zhejiang University, experimented with automated stock trading, according to local media reports. His profile in China\u2019s asset management association registry says he was a freelancer until 2013, when he incorporated his first investment firm.By 2021, all of High-Flyer\u2019s strategies were using AI, according to manager Cai Liyu, employing strategies similar to those pioneered by hugely profitable hedge fund Renaissance Technologies. \u201cAI helps to extract valuable data from massive data sets which can be useful for predicting stock prices and making investment decisions,\u201d he said during a roadshow that streamed online that year.Cai said the company\u2019s first computing cluster had cost nearly Rmb200mn and that High Flyer was investing about Rmb1bn to build a second supercomputing cluster, which would stretch across a roughly football pitch-sized area. Most of their profits went back into their AI infrastructure, he added.The second cluster, now complete, connects more than 10,000 of Nvidia\u2019s cutting-edge processors with servers and storage, giving DeepSeek the computing power to train a large model, according to archived versions of the company\u2019s website. The group acquired the Nvidia A100 chips before Washington restricted their delivery to China in mid-2022.\u201cWe always wanted to carry out larger-scale experiments, so we\u2019ve always aimed to deploy as much computational power as possible,\u201d founder Liang told Chinese tech site 36Kr last year. \u201cWe wanted to find a paradigm that can fully describe the entire financial market.\u201dThe company is one of six Chinese groups with more than 10,000 A100 processors, commonly believed to be a computational threshold for self-training large models, according to Guosheng Securities. The other five are all Chinese tech giants, though their collective computing power pales in comparison to US companies. Meta has said it will have computing power equal to nearly 600,000 of Nvidia\u2019s more advanced H100 chips by the end of the year.Tests run by research groups rank DeepSeek-V2 among the top LLMs in the world. Researchers at the University of Waterloo in Canada scored it among the top 10 models behind OpenAI\u2019s GPT-4, Anthropic\u2019s Claude and Chinese rival 01.AI.\u00a0DeepSeek\u2019s model is also open source, allowing AI researchers to inspect its structure and copy it.\u201cThe model\u2019s architecture is very unique,\u201d said Andrew Carr, chief scientist at Cartwheel, an AI animation start-up based in the US. \u201cDeepSeek has taken this idea called mixture of experts, where you split up a model into smaller chunks, to the extreme, with hundreds of small experts.\u201dCarr said the model came close to matching Meta\u2019s latest Llama 3 model but with lower pricing. Its price is about 100th the cost of OpenAI\u2019s GPT-4 and a fifth of Anthropic\u2019s Claude 3 Haiku.Tiezhen Wang, an engineer at New York-based AI research hub Hugging Face, said DeepSeek\u2019s team had reduced what the model needed to remember while allowing it to \u201chandle more tasks at the same time without slowing down\u201d. Inside China, the pricing strategy has helped sign up developers. Wang Zixu, a programmer based in northern China, said he had switched from using OpenAI\u2019s GPT-4 for coding help to DeepSeek because of the lower prices.Even with the cost advantage, some industry experts said DeepSeek could be losing money at its low price point. Its computing power may also fall further behind rivals as Nvidia releases new chips banned from export to China.Still, High-Flyer\u2019s AI offshoot is aiming to be the first to achieve artificial general intelligence, the point at which machines have greater cognitive capabilities than humans.\u201cWe believe AGI is the violent beauty of model x data x computing power,\u201d said one job recruitment advertisement for DeepSeek. \u201cEmbark on a \u2018deep quest\u2019 with us on the journey towards AGI!\u201dAdditional reporting by Nian Liu in Beijing<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic One of the pack of Chinese AI hopefuls trying to take on the likes of OpenAI comes from an unusual source: a quant fund dominating the country\u2019s financial sector.High-Flyer Capital Management, a Chinese quantitative hedge fund, has grown into a roughly Rmb60bn ($8bn) asset<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-112661","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/112661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=112661"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/112661\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=112661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=112661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=112661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}