In this article, we discuss 12 AI news investors probably missed.
AI is evolving rapidly with recent breakthroughs making it more accessible and efficient than ever. Smaller, cost-effective models are emerging, which are challenging the idea that cutting-edge AI requires massive resources. DeepSeek seems to be a great example of that.
Moreover, Tech Crunch reported that barely a week after DeepSeek unveiled its R1 reasoning AI model, Hugging Face has launched Open-R1, a project to replicate and fully open-source DeepSeek’s R1 reasoning AI model, addressing concerns about its lack of transparency. While R1 has gained attention for its efficiency and top performance, Hugging Face aims to demystify its training process to promote responsible use and innovation. Using its Science Cluster, the team plans to recreate R1 and make it a foundation for future open-source models, emphasizing the collaborative benefits of openness in AI.
Rethinking AI Dominance in a Multi-Model World
At CNBC’s WorldWide Exchange, Zack Kass, an AI futurist and former Head of GTM at OpenAI, discussed the implications of a Chinese firm creating a GPT-4 equivalent model with remarkable efficiency. He highlighted how this reflects a shift from reliance on capital and scale toward innovation driven by necessity. Kass noted that while U.S. firms have benefited from abundant resources, China’s limitations spurred creative breakthroughs, such as building a competitive model at a lower cost.
He addressed skepticism about claims regarding the model’s development cost and chip usage and suggested that it is reasonable to assume the information is largely accurate. Kass also commented on the evolving role of national security in AI, emphasizing the private sector’s growing involvement. While a U.S. executive order aimed at restricting China’s access to chips may not have achieved its intended impact, it may have unintentionally fueled innovation.
Kass argued that the research behind AI models is becoming increasingly accessible, which could lead to more discoveries worldwide. He dismissed concerns over U.S. dominance in AI, framing this development as an opportunity for cheaper, widely available technology. On open source, Kass noted that the future likely involves a diverse ecosystem of models, rather than dominance by a single proprietary approach.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 AI News Investors Probably Missed
12. Nano Labs Ltd (NASDAQ:NA)
Number of Hedge Fund Holders: N/A
Nano Labs Ltd (NASDAQ:NA) is a Chinese company that designs computing chips and offers distributed computing, storage solutions, and vision computing technologies.
On January 28, Nano Labs (NASDAQ:NA) announced a strategic investment, acquiring a 5% stake in Hangzhou Weiheng Technology, a company developing AI-focused ASIC compute-storage chips for edge computing and large AI models. The chips are compatible with DeepSeek’s latest models. CEO Dr. Jianping Kong highlighted the growing adoption of AI across industries, driven by cost-performance optimization, and emphasized the potential for endpoint computing advancements in 2025. He expressed confidence in Weiheng Technology’s ability to capitalize on emerging opportunities and contribute to global technological progress.
11. Lichen China Limited (NASDAQ:LICN)
Number of Hedge Fund Holders: 1
Lichen China Limited (NASDAQ:LICN) is a Chinese company that provides financial, taxation, and internal control consulting services, along with educational support, training software, and maintenance for the accounting and finance sectors.
On January 28, Lichen China Limited (NASDAQ:LICN) announced plans to integrate the DeepSeek optimization framework into its Financial and Taxation AI Model by Q2 2025, with trials starting in March. The integration aims to advance AI performance in processing complex financial and taxation tasks. DeepSeek’s multi-modal support will allow the AI to handle text, images, and audio, improving document analysis. It also offers efficient computation, long-context processing for detailed documents, adaptive learning based on user feedback, and improved security to ensure reliable outputs for financial applications.
