Key highlights:
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The High-Flyer hedge fund returned 56.6% in 2025, giving DeepSeek a strong financial base for AI development.
DeepSeek uses the fund’s profits to scale computing power and hire experts without outside investor pressure.
The fund’s success positions DeepSeek to compete with OpenAI, Google, and other global AI leaders.
Hedge fund Zhejiang High-Flyer Asset Management achieved a 56.6% return in 2025, providing DeepSeek founder Liang Wenfeng with the financial resources to develop his artificial intelligence project. Managing $10 billion in assets, the fund’s performance could reshape the global AI technology landscape.
Liang Wenfeng in 2019. Source: VCG/Getty Images
Consulting firm Shenzhen PaiPaiWang Investment & Management Co. reported on January 12, 2026, that High-Flyer was the second-best-performing major Chinese algorithmic hedge fund, behind only Ningbo Lingjun Investment Management Partnership, which posted a 73.5% return.
The fund employs mathematical models and algorithms for trading decisions, generating tens of billions of yuan in the expanding Chinese stock market. This financial independence allows DeepSeek to develop without relying on venture capital or external investors.
Incubated at High-Flyer in 2023, DeepSeek has already shaken up the AI sector by creating models comparable to GPT-4 while spending just $6 million, far less than its competitors’ hundreds of millions.
Source: carboncredits.com
A new model for AI startup development
Profits from algorithmic trading allow Liang Wenfeng to invest in computing infrastructure and specialist talent without prioritizing short-term returns. This model contrasts sharply with typical AI startups that depend on funding rounds and investor demands.
In 2025, Chinese algorithmic funds averaged 30.5% returns, more than double that of global peers, creating a favorable domestic environment for funding technology projects. High-Flyer’s success demonstrates a path where profitable financial services fuel long-term research, potentially inspiring hybrid companies combining finance and technology.
Strategic advantage against western AI giants
High-Flyer’s strong returns provide DeepSeek with a competitive edge over global AI leaders such as OpenAI and Google. Access to capital without investor constraints allows experimentation with long-term projects, potentially improving AI model performance.
The combination of low development costs and high fund returns enables DeepSeek to scale while maintaining strategic flexibility.
Liang Wenfeng’s fund performance illustrates how successful financial instruments can catalyze technological innovation, potentially altering AI funding models and increasing industry competition.
Expert analysis
Historical parallels can be drawn between DeepSeek’s funding model and Berkshire Hathaway, which used the insurance business as a source of capital for investments. Similarly, High-Flyer uses algorithmic trading as a financial foundation for AI development.
However, analysts note risks: DeepSeek’s success is concentrated in Chinese assets, making it sensitive to market volatility and regulatory changes from Beijing. Even a single regulatory decision could significantly impact the startup’s strategic advantage.
Source: https://coincodex.com/article/80107/zhejiang-high-flyer-delivers-56-percent-return-while-boosting-ai-startup-deepseek/
