DeepSeek’s Hedge Fund Owner Had Multiple Top Projects Before Creating The Firm That Fueled $1 Trillion Market Cap Erosion Of AI Stocks – NVIDIA (NASDAQ:NVDA)

Chinese hedge fund High-Flyer, likewise called Hangzhou Huanfang Innovation Ltd. Co., established DeepSeek in 2023 planning to check out synthetic basic intelligence (AGI), nevertheless, much before the AI start-up ended up being popular and sent out shockwaves through the world of innovation, this quantitative fund was included with a number of developments in China.

Leading Projects Before DeepSeek

1. High-Flyer established its very first AI supercomputer “Yinghuo– 1” in 2020, which equates to, Fire-Flyer I, with an approximate financial investment of 200 million Yuan or $27.44 million, according to ChinaTalk. Released in the exact same year with 1,100 graphic processing systems (GPUs), it supplied calculating power for AI-led research study to assist in quantitative trading.
2. With a financial investment of one billion Yuan or $137.204 million, it released “Yinghuo– 2” or Fire-Flyer II in 2021 which included around 10,000 Nvidia Corp.’s NVDA A100 GPUs. It likewise included innovative hardware and 200 Gbps high-bandwidth connection.
3. After losing over a 3rd of its financiers’ cash in 2022, dropping from a peak of over $12 billion, as reported by Reuters, the hedge fund revealed a shift in technique. High-Flyer, through its main WeChat account, stated that it would focus solely on establishing AI innovation for the advantage of humankind, forming a brand-new independent research study group devoted to checking out the capacity of AGI. This restructuring resulted in the development of DeepSeek in 2023.

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History Of High-Flyer

The business was established by Liang Wenfeng, Xu Jin, and Zheng Dawei in February 2016 in Ningbo, Zhejiang Province. Depending on mathematics and AI for quantitative financial investment it took the very first stock position by utilizing the deep knowing algorithm design and GPUs on Oct. 21, 2016.

Its subsidiaries, Zhejiang High-Flyer Possession Management Co., Ltd., and Ningbo High-Flyer Quant Financial Investment Management Collaboration LLP are controlled by the Possession Management Association of China.

The business won the Golden Bull Fund Award for the very first time in 2018 and it developed High-Flyer Capital Management (Hong Kong) Ltd in 2019, certified and controlled by the Securities and Futures Commission of Hong Kong.

Wenfeng is now the CEO of DeepSeek, who owns roughly 51% of High-Flyer.

Since December 2024, High-Flyer has possessions under management worth $8 billion, according to the report.

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What Is A Quantitative Hedge Fund?

Quantitative hedge funds or ‘quant’ funds utilize advanced mathematical designs, analytical analysis, and computer system algorithms to determine trading chances. Depending on information analysis instead of standard basic analysis, they use techniques like analytical arbitrage, threat parity, and element investing, utilizing intricate computer system programs to examine enormous datasets and reveal exploitable market patterns.

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