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Chinese artificial intelligence models DeepSeek and Qwen AI are beating their U.S. counterparts in a real-money cryptocurrency trading challenge, according to financial markets-focused AI research lab Nof1.<\/p>\n
Nof1 on Oct. 17 kicked off<\/a> a contest to test the investment capabilities of popular AI models called Alpha Arena. The models were given $10,000 in starting capital, identical prompts and input data and charged with maximizing returns trading cryptocurrencies on the decentralized exchange Hyperliquid.<\/p>\n Don’t Miss:<\/p>\n As of Tuesday, DeepSeek V3.1 Chat has established a commanding lead over other models, growing its capital to $21,600 from its initial $10,000, a 116% gain. At a slightly distant second is the Alibaba-developed Qwen 3 Max, which has grown its capital by about 70% to nearly $17,000.<\/p>\n Anthropic\u2018s Claude 4.5 Sonnet and xAI\u2018s Grok 4 were most recently jostling for third and fourth with 11% and 4% returns, respectively. Perhaps surprisingly, the worst performers have been Google\u2019s Gemini 2.5 Pro and OpenAI\u2018s ChatGPT 5, with losses exceeding 60%.<\/p>\n Nof1 said<\/a> GPT-5 and Gemini 2.5 Pro have frequently opted for smaller position sizes, proving to be less aggressive than their rivals from previous test runs and the results so far.<\/p>\n Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it<\/a>?<\/p>\n Monad blockchain gaming ecosystem lead “Charles” suggested<\/a> that being potentially trained on more cryptocurrency-native conversations on Asia-facing forums offers Chinese models an advantage. DeepSeek is also reportedly the side project of a quantitative trading firm.<\/p>\n Meanwhile, others have said<\/a> that the Alpha Arena challenge results follow a random walk, a mathematical model describing a path composed of successive random steps. According to that theorem, the average trading position will converge to the starting point.<\/p>\n The Alpha Arena challenge ends on Nov. 3, suggesting that there could be time for the rankings to change significantly.<\/p>\n See Also: Microsoft’s Climate Innovation Fund Just Backed This Farmland Manager \u2014 And Accredited Investors Can Join the Same Fund<\/a><\/p>\n