DeepSeek, Qwen AI Besting ChatGPT, Grok, Gemini In AI Crypto Trading Challenge

Core Insights - Chinese AI models DeepSeek and Qwen AI outperform their U.S. counterparts in a cryptocurrency trading challenge organized by Nof1 [1][2] Group 1: Contest Overview - The Alpha Arena contest began on October 17, testing the investment capabilities of various AI models with a starting capital of $10,000 [2] - The challenge involves trading cryptocurrencies on the decentralized exchange Hyperliquid, with models given identical prompts and input data [2] Group 2: Performance Results - DeepSeek V3.1 Chat leads the competition, increasing its capital to $21,600, representing a 116% gain [3] - Qwen 3 Max, developed by Alibaba, follows in second place with a capital increase of approximately 70%, reaching nearly $17,000 [3] - Anthropic's Claude 4.5 Sonnet and xAI's Grok 4 are in third and fourth place with returns of 11% and 4%, respectively [4] - Google's Gemini 2.5 Pro and OpenAI's ChatGPT 5 are the worst performers, with losses exceeding 60% [4] Group 3: Factors Influencing Performance - The advantage of Chinese models may stem from being trained on cryptocurrency-native conversations from Asia-facing forums [5] - DeepSeek is reportedly a side project of a quantitative trading firm, which may contribute to its performance [5] Group 4: Contest Dynamics - The Alpha Arena challenge concludes on November 3, indicating potential for significant changes in rankings before the end [6] - Some analysts suggest that the results may follow a random walk, implying that average trading positions could revert to the starting point over time [6] Group 5: Broader Context - The Alpha Arena is part of a series of experiments assessing AI trading capabilities, with previous studies indicating that AI models can outperform traditional managers significantly [7]