Shares in U.S. semiconductor giant Nvidia flattened today on fears that another DeepSeek-like Chinese threat was just around the corner.
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AI Training Technique
Nvidia investors were responding to news that Chinese quantitative trading fund Goku had submitted a research paper to one of the world’s top artificial intelligence conferences detailing a new AI training technique.
It is understood that Shanghai Goku Technologies, established in 2015, has said that its new technique can outperform mainstream methods employed by leading AI research labs.
The paper sent to the Conference on Neural Information Processing Systems – an annual getting together of top machine learning boffins known affectionately as the AI Olympics – is said to outline the limits of popular AI training methods including supervised fine-tuning (SFT) and reinforcement learning (RL).
Instead, it has proposed implementing a step-wise adaptive hybrid training framework called SASR. This is said to be inspired by the way humans develop reasoning capabilities and provides better results. It has developed the method with the help of Shanghai Jiao Tong University and its AI unit, Shanghai AllMind.
Chinese AI March
Goku did not provide any other details on the paper, but it once again underlines the advancements being made in AI by Chinese firms.
DeepSeek rattled the Magnificent Seven stocks earlier this year including Nvidia and Microsoft (MSFT) when it released a model that matched its American rivals in performance but was developed at a fraction of the cost.
Nvidia’s stock plunged after DeepSeek’s arrival but has since built itself back up, helped by new deals in Saudi Arabia and tech giants such as Microsoft reasserting AI investment plans.
Could the arrival of another DeepSeek-like rival threaten the comeback? More results from the AI Olympics will be eagerly awaited.
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