DeepSeek’s Liang Wenfeng Turns AI Hobby Into U.S. Stock Crisis.
Liang Wenfeng is the name behind DeepSeek, the Chinese AI startup that has caused a massive disruption in the global tech scene. What began as a side project has now evolved into a serious threat to U.S. tech giants like OpenAI, Google, and Nvidia, sending shockwaves through the stock market. But who is the man behind this groundbreaking company?
Liang Wenfeng doesn’t fit the traditional mould of a Silicon Valley AI pioneer. Unlike the likes of OpenAI’s Sam Altman, Liang hails from the world of finance. After graduating from Zhejiang University, he co-founded the quantitative hedge fund High-Flyer in 2015, where he integrated AI into the fund’s trading strategies to predict market trends and make investment decisions.
According to the Financial Times, it was in 2021 when Liang started buying thousands of Nvidia graphics chips as part of a personal AI project. At the time, the venture seemed more like a hobby than a serious business pursuit. One of Liang’s business partners recalled, “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. We didn’t take him seriously.”
But Liang’s vision was far bigger than anyone anticipated. By 2023, he launched DeepSeek, with the aim of developing artificial general intelligence (AGI) — AI that could match human intelligence. And this is where things started to get interesting.
DeepSeek has gained rapid attention for its ability to develop cutting-edge AI technologies at a fraction of the cost of competitors. This has cast doubt on the hundreds of billions of dollars being poured into the sector by U.S. firms. The fallout was immediate: On Monday, shares of Nvidia plunged 17%, causing a broader sell-off in tech stocks, with the Nasdaq dropping 3% and the S&P 500 down 1.8%. Meanwhile, companies like Constellation Energy, which benefits from AI data centres, saw a 20% drop in stock value.
What sets DeepSeek apart, according to Liang, is its focus on innovation and its unique approach to AI development. While many companies rely on expensive, closed-source models, DeepSeek has adopted an open-source approach. Liang argues that sharing breakthroughs with the wider community doesn’t weaken the company’s competitive edge. “Our real moat lies in our team’s growth—accumulating know-how, fostering an innovative culture,” he said. “Open-sourcing and publishing papers don’t result in significant losses. For technologists, being followed is rewarding.”
DeepSeek operates with a bottom-up philosophy, encouraging collaboration without rigid hierarchies. This flexible approach allows for organic growth and spontaneous innovation. Liang believes that fostering an environment of trust and creativity is key to producing the next big AI breakthroughs.
In a July 2024 interview, Liang explained DeepSeek’s broader vision for China’s AI landscape. “What we lack isn’t capital but confidence and the ability to organise high-calibre talent for effective innovation,” he said. “Innovation requires confidence, and young people tend to have more of it.” He stressed that DeepSeek is focused on advancing the technological frontier, not seeking quick profits, as China moves from a follower of technology to a global leader in AI.
Despite the odds, DeepSeek’s rise has already begun to shake up the AI market. Its open-source model and groundbreaking efficiency have investors rethinking where to put their money, as the company challenges the notion that only the U.S. can lead in the AI race.
Liang’s success has certainly put DeepSeek on the map, and with the company’s commitment to innovation, it’s clear that this is only the beginning.
