We were recently featured in an Australian Financial Review article discussing the development costs of DeepSeek, a Chinese AI model. As a global equities fund specialising in AI and technology investments, we offer insights into this rapidly evolving sector. Our co-founder Armina Rosenberg provided expert commentary on the true costs behind AI model development. She highlighted the importance of looking beyond raw training costs:
"This focus on raw training costs is misleading. While DeepSeek's technical innovations in training efficiency are impressive, the total investment required to develop a competitive model goes far beyond just the direct compute costs," she said.
Rosenberg emphasised that DeepSeek allegedly had access to 50,000 high-end GPUs worth around $1 billion, along with significant engineering resources. She noted that while efficiency gains are noteworthy, they don't fundamentally change the substantial investment needed to compete at the frontier of AI development.
Our equity research and portfolio management strategies are continuously adapted to account for the rapid pace of progress in AI. We leverage our expertise in global equities to identify opportunities in this dynamic market, while remaining committed to providing our clients with a fund that capitalises on these technological advancements.
To read the article, click the link below.