Monday, February 3, 2025

How DeepSeek Went From Stock Trader to A.I. Star, A SEISMIC SHIFT IN AI

DeepSeek, which started as a finance-focused hedge fund, has rapidly ascended to AI stardom with a powerful and cost-efficient model.

NDTV Explainer: How DeepSeek, Once A Stock Trader, Became A Major AI Player

DeepSeek's journey began in the financial sector under its parent company, High-Flyer (Representative)

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 2025
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.

Brain food

A look at the foods that keep our brains healthy and thriving and the foods that do the opposite.

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FOR many decades, the prevailing belief was that the number of cells in the adult human brain was static, incapable of producing new neurons after adulthood.

However, research has established that this is not true, at least in an important part of the brain called the hippocampus. Studies since the 1960s have established that several mammals can regenerate neurons in this region throughout their lives. There had since then been considerable research into the same phenomenon in human brains, with inconclusive outcomes. Finally, plausible evidence that adult human brains can also regenerate and renew hippocampal cells was collated in a detailed 2021 Spanish review, “Evidences for Adult Hippocampal Neurogenesis in Humans”.

Moreover, it appears that this process, known as “neurogenesis”, plays a crucial role in human learning, memory, and overall cognitive function throughout all our lives. While the generation of new neurons in the adult human hippocampus occurs at a significantly reduced rate compared to infancy and childhood, these nascent cells still play a critical role in maintaining mental well-being, underpinning the hippocampus’s vital function in memory consolidation and cognitive function.

Brain-friendly diet

It is no surprise to learn that the foods we consume can either enhance or hinder neurogenesis. Adopting informed dietary choices can empower our brains to function at their best and potentially stave off cognitive decline as we age. And these informed choices are often simple, delicious, and effective.

The best foods to promote neurogenesis are those which provide the chemical building blocks and support systems necessary for robust neurogenesis. Usefully, they are often also the most highly recommended foods to eat for optimal general health.

Omega-3 fatty acids

These healthy fats are abundant in oily fishes like salmon, mackerel, sardines, and also in certain algae, walnuts, flaxseeds, leafy greens, etc. Omega-3 plays a critical role in brain health by improving the fluidity of brain cell membranes, allowing for better communication between neurons. Importantly, they also boost the production of BDNF (Brainderived

Neurotrophic Factor), a special protein essential for neuronal augmentation, survival, differentiation, morphogenesis (development of form and structure in cells), and synaptic plasticity (improved function and linkage stability).

Omega-3 fatty acids are divided into short-chain and long-chain acids. The short-chain acid is known as Alpha-linolenic Acid, contains 18 carbon atoms and is mostly found in seeds and plants. The long-chain versions are usually derived from oily fishes and includes Eicosapentaenoic Acid which contains 20 carbon atoms, and Docosahexaenoic Acid (DHA) which contains 22 carbon atoms.

Of particular interest to neurogenesis are the long-chain DHA molecules, which activate the expression of genes related to BDNF production. These genes then activate molecules such as the CREB (Cyclic-amp Response Element-binding) protein in the brain. The activation of CREB by BDNF not only supports neurogenesis but also enhances further BDNF expression itself, creating a positive feedback loop that reinforces neuronal growth and plasticity.

DHA also provokes other required signalling pathways required for BDNF production. DHA and other omega-3 acids then assist in regulating BDNF production in several interesting ways too complex to describe here; eg, via expressing complex paired protein structures called “heterodimers.”

Polyphenols

Found in a vibrant array of fruits and vegetables such as blueberries, strawberries, grapes, red onions, spinach, as well as olive oil, tea, cocoa, polyphenols are powerful molecules that protect brain cells from damage and help promote neurogenesis.

Polyphenols work in several ways, and probably the most well-known mechanism is the suppression of inflammation (or neuroinflammation in the brain), via their antioxidative properties. This confers a degree of protection against injuries from various toxins, derived either from bad diets or environmental factors.

Reduced inflammation creates a much better environment for the development of new neurons.

Some lesser-known effects of polyphenols in the brain are:

• their ability to trigger signalling cascades in the brain, thus promoting neuronal survival and synaptic plasticity,

• enhancing the proliferation and differentiation of new cells in the subgranular and subventricular zones and the dentate gyrus of the hippocampus; and,

• inducing the expression of an unusual protein called “doublecortin,” specifically found only in developing neurons.

Vitamins B9 and B12

Essential for DNA synthesis in the body and the production of neurotransmitters, vitamins B9 and B12 are also crucial for neurogenesis. Leafy greens, beans, fish, and dairy products are examples of good sources of these vital nutrients.

There are two types of vitamin B9 available for human consumption: (1) folates, and (2) folic acid. While roughly equivalent in function, there are significant differences.

Folates are the natural form of vitamin B9, found in real foods, such as dark coloured leafy vegetables, beans, seafoods, nuts, etc. They are easily destroyed by high cooking heat. Hence, they are seldom found in ultra-processed foods (UPF).

Folic acid is a synthetic compound usually manufactured via a chemical process involving para-nitrobenzoic acid, thionyl chloride, toluene, monosodium glutamate, etc. Despite its artificial origins, there are health benefits of folic acid, which are often added to UPFS such as baked goods, cereals, pastas, flours, etc. The inclusion of folic acid in such foods was mandated in 1998 in the USA to prevent neural tube defects (severe defects of the central nervous system) in newborn babies.

An advantage of folic acid is that it is significantly more bioavailable for absorption (85%) than folates (50%) and it is also less affected by cooking heat and food processing. However, folic acid must be converted into 5- methyl tetra hydro fol ate (5-MTHF) before it is usable by the body. Folates from real food are already in 5-MTHF form and importantly are also presented with special proteins called Carrier Food Factors (CFF), which direct 5-MTHF to various target organs in the body, including the brain. Folic acid has no such complementary proteins.

The effect of vitamin B9 on neurogenesis is simply dose dependent. A chronic shortfall of B9 induces degeneration of the brain while elevated levels promote neurogenesis.

Vitamin B12 is known for stabilising and repairing neurons in the brain. It does this by maintaining the myelin sheaths of the axons of brain cells. Axons are the fine long dendritic links used by neurons for communication with other neurons. The vitamin also promotes the production of the myelin needed for the axons of new brain cells during neurogenesis. Additionally, B12 induces antioxidant activity by stimulating the production of special enzymes which destroy free radicals.

Anti-inflammatory foods

Any foods that reduce inflammation in the body are likely to be good for neurogenesis. This is simply because neurogenesis is impaired by inflammation. Bad diets can introduce free radicals and other inflammatory molecules into the body, which can then migrate from the digestive system into the blood, and then into the brain.

The range of anti-inflammatory foods is extensive, and include berries, leafy greens, fatty fish, nuts, whole grains, olive oil, turmeric, green tea, dark chocolate, etc. Basically, if you eat mostly natural plant-based foods (especially colourful vegetables in their raw forms) and avoid red meats and processed foods, your diet would almost certainly be helping to reduce inflammation in your body.

Factors hindering neurogenesis

Many factors can hinder neurogenesis. These factors are all around us and sometimes may be unavoidable.

Lousy diets

Ultra-processed foods (including junk and fast foods) are among the most harmful dietary choices for brain health. UPFS are cheap, delicious, ubiquitous, and can wreak havoc on brain health if over-consumed. Ingredients such as poor-quality fats (see below), processed starches, additives, sugars, and salt in UPFS reduce BDNF levels, impair neuroplasticity and induce neuroinflammation. Over-consumption of some UPFS has also been linked to cell deaths and cancers, which are the claimed side-effects of certain artificial additives.

Overconsumption

Lousy diets and UPFS frequently trigger intense food

cravings by causing dramatic fluctuations in blood glucose levels. This is a consequence of their refined starches and elevated sugar concentrations. These glucose swings can lead to eating addictions/cravings and subsequent overconsumption. Persistent overconsumption of lousy foods normally leads to diseases linked to metabolic syndrome over time. And nothing about acquiring metabolic syndrome is conducive to neurogenesis.

Poor-quality fats

We are generally aware of the dangers of over-eating saturated animal fats, because of their impact on blood cholesterol levels. But there is another danger of over-consuming certain plantbased fats, which is much less known.

The ratio of Omega-3 and Omega-6 fatty acids for humans should ideally be around 1:2, as it was during Palaeolithic times. However, a modern Western diet has an average ratio of 1:15. This high ratio is largely attributable to the amounts of Omega6 fatty acids in processed foods and seed oils, while the amounts of dietary Omega-3 fatty acids have remained relatively static. Note that some UPFS have unhealthy ratios of 1:30 or more, as producing foods with Omega-6 oils is much cheaper than using Omega-3 oils.

A consistently overly high ratio of Omega-6 in the diet is potentially a significant issue. Omega-3 metabolises into anti-inflammatory compounds while Omega-6 is processed into pro-inflammatory molecules. However, both are metabolised by the same enzymes (delta-6-desaturase and delta-5-desaturase). Therefore, there is competition for these enzymes during digestion.

Higher amounts of Omega-6 would grab more of the enzymes, resulting in the production of more pro-inflammatory signalling molecules (eg, eicosanoids, prostaglandins, and leukotrienes). Without Omega-3 to mitigate Omega-6, large numbers of pro-inflammatory molecules can trigger a cascade of inflammation throughout the body and brain via complex processes too detailed to describe here.

This is a two-part column. The next part explores the enigma of red wine and offers other factors which can promote neurogenesis.

By CHRIS Chan, The views expressed here are entirely the writer’s own.m

"Brain food" refers to foods that are believed to improve cognitive function, memory, focus, and overall brain health. These foods are typically rich in nutrients like antioxidants, healthy fats, vitamins, and minerals that support brain function. Here are some examples of brain-boosting foods:

1. Fatty Fish

Examples: Salmon, mackerel, sardines, trout.
Why: Rich in omega-3 fatty acids (DHA and EPA), which are essential for brain health, memory, and reducing inflammation.

2. Blueberries

Why: Packed with antioxidants that protect the brain from oxidative stress and may improve communication between brain cells.

3. Nuts and Seeds

Examples: Walnuts, almonds, flaxseeds, chia seeds.
Why: High in healthy fats, antioxidants, and vitamin E, which support brain health and may reduce cognitive decline.

4. Dark Chocolate

Why: Contains flavonoids, caffeine, and antioxidants that can enhance memory and improve mood.

5. Leafy Greens

Examples: Spinach, kale, broccoli.
Why: Rich in vitamin K, lutein, folate, and beta carotene, which are linked to slower cognitive decline.

6. Eggs

Why: A great source of choline, which is used to produce acetylcholine, a neurotransmitter important for mood and memory.

7. Turmeric

Why: Contains curcumin, which has anti-inflammatory and antioxidant benefits that may improve memory and ease depression.

8. Whole Grains

Examples: Oats, quinoa, brown rice.
Why: Provide a steady supply of energy to the brain through complex carbohydrates and fiber.

9. Avocados

Why: High in healthy monounsaturated fats that support blood flow to the brain and improve cognitive function.

10. Green Tea

Why: Contains caffeine and L-theanine, which can improve focus, alertness, and relaxation.

11. Pumpkin Seeds

Why: Rich in magnesium, iron, zinc, and copper, which are essential for brain health and nerve signaling.

12. Oranges

Why: High in vitamin C, which is key for preventing mental decline and supporting overall brain health.

13. Beets

Why: Improve blood flow to the brain and enhance cognitive performance due to their high nitrate content.

14. Greek Yogurt

Why: Contains probiotics that support gut health, which is linked to improved brain function and mood.

15. Water

Why: Staying hydrated is crucial for maintaining focus, memory, and overall brain function.

Incorporating these foods into a balanced diet can help support brain health and cognitive performance over time. Remember, a healthy lifestyle—including regular exercise, adequate sleep, and stress management—also plays a key role in maintaining optimal brain function.

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