DeepSeek Beats OpenAI, Nvidia Reaches $5T Value

Chinese AI models recently demonstrated strong performance in a real-money cryptocurrency trading competition, signaling growing global competition in artificial intelligence. Alibaba Cloud's Qwen3-Max AI model secured a 22.32% return on a $10,000 investment over two weeks in Nof1's "Alpha Arena" contest. DeepSeek's V3.1 Chat, another Chinese model, also posted a profit of 4.89%. In contrast, all four participating US models, including OpenAI's GPT-5 and Elon Musk's Grok, incurred losses, with GPT-5 dropping 62.66%. Nof1, the US research firm behind the test, cautioned that these early results could be influenced by luck and plans to implement more rigorous testing in future rounds. This comes as China aims to triple its AI chip output by 2026, despite US export restrictions. Meanwhile, the demand for AI infrastructure continues to drive significant investment and market shifts. Nvidia, a dominant force in AI accelerator chips, recently saw its market value climb to $5 trillion. The company is poised to benefit substantially from OpenAI's ambitious plans to scale its GPU count from 1 million to 100 million, especially as OpenAI's partnership changes with Microsoft could pave the way for an IPO, potentially valuing the company at $1 trillion. Nvidia's market leadership remains strong, even with rival AMD planning new accelerators. Major tech giants are pouring billions into building out AI capabilities. Amazon, Microsoft, and Alphabet are collectively spending $350 billion this year on AI data centers and chips. Meta Platforms, for instance, projects an investment of up to $600 billion over the next three years for AI infrastructure, including data centers and talent, despite its stock dropping 12% after the announcement as investors seek clearer revenue-generating AI products. Companies like Applied Digital and Core Scientific are capitalizing on this demand, with Applied Digital securing a $5 billion, 15-year lease for 200 megawatts, and Core Scientific rejecting a $9 billion buyout offer from CoreWeave to maintain independence while planning 900 megawatts for AI. Navitas Semiconductor is also shifting its focus to high-power AI data centers, partnering with Nvidia for its next-generation 800V DC AI factory architectures. Beyond infrastructure, other companies are navigating the evolving AI landscape. Cisco Systems saw its Fair Value Estimate increase, reflecting renewed confidence in its AI and enterprise networking opportunities. SoftBank Group's shares have surged over 173% this year due to its AI investments, though they recently experienced a slight dip. Palantir Technologies saw its shares fall after significant gains, with an analyst noting its high price-to-sales ratio. In the medical diagnostic space, Tempus AI reported strong third-quarter sales of $334.2 million and higher full-year 2025 guidance of about $1.265 billion, yet its stock declined. Investors are also closely watching earnings reports from other high-growth AI stocks like Astera Labs and Super Micro Computer this week.

Key Takeaways

  • Alibaba's Qwen3-Max AI model achieved a 22.32% return on a $10,000 investment in Nof1's Alpha Arena crypto trading contest.
  • DeepSeek's V3.1 Chat, another Chinese AI, made a 4.89% profit in the same contest, while US models like OpenAI's GPT-5 (down 62.66%) lost money.
  • Nvidia's market value reached $5 trillion, driven by its dominance in AI accelerator chips and strong free cash flow of $45 billion.
  • OpenAI aims to increase its GPU count from 1 million to 100 million, a move expected to significantly benefit Nvidia.
  • OpenAI's potential IPO, possibly at a $1 trillion valuation, could raise $60 billion, further boosting demand for AI infrastructure.
  • Amazon, Microsoft, and Alphabet are projected to spend $350 billion this year on AI data centers and chips.
  • Meta plans to invest up to $600 billion over three years in AI infrastructure, including data centers and talent, despite a 12% stock drop post-announcement.
  • Core Scientific rejected a $9 billion buyout offer from CoreWeave to remain independent, planning 900 megawatts for AI hosting.
  • Navitas Semiconductor partnered with Nvidia to provide power semiconductors for NVIDIA's next-generation 800V DC AI factory architectures.
  • China plans to triple its AI chip output by 2026, indicating a strategic focus on domestic AI development.

Alibaba's Qwen AI wins investment contest

Alibaba's AI model, Qwen, won the "Alpha Arena" investment competition. This event, started by Nof1, had six top AI models, including Qwen3-Max, DeepSeek v3.1, and GPT-5. Each model began with $10,000 and traded for 17 days without human help. Qwen earned a 22.32% return, while DeepSeek also made a profit. In contrast, all four US models, including GPT-5, lost money, with GPT-5 dropping 62%.

Alibaba AI beats US rivals in crypto trading

Alibaba Cloud's Qwen3-Max AI model earned a 22.32% return on a US$10,000 investment in two weeks. This happened during Nof1's Alpha Arena, a real-money crypto trading test against five other top AI systems. DeepSeek's V3.1 Chat, another Chinese model, also made a profit of 4.89%. However, all four US models, including OpenAI's GPT-5, lost money, with GPT-5 dropping 62.66%. Nof1 noted these early results might be due to luck and will add more strict testing later. Qwen3-Max was unique as it did not use step-by-step reasoning for its decisions.

Alibaba AI model tops crypto trading test

Alibaba Group's Qwen3-Max AI model led a real-market cryptocurrency trading test by US firm Nof1. In the Alpha Arena competition, Qwen3-Max achieved a 22.32% return on a $10,000 investment in just two weeks. DeepSeek AI came in second with almost 5% gains, making them the only two profitable models out of six. Nof1 warned that these early results might be luck and will add more strict testing in future rounds. The models only used market data, not news. Alibaba is also working on new AI chips, and China plans to triple its AI chip output by 2026 despite challenges and US export restrictions.

Alibaba Qwen3-Max wins AI crypto trading contest

Alibaba's Qwen3-Max AI model achieved the best returns in a crypto trading contest called Alpha Arena. This test, run by US research firm Nof1, pitted six AI models, including GPT-5 and Elon Musk's Grok, against each other. Qwen3-Max made a 22.32% return on a $10,000 investment in two weeks. DeepSeek's V3.1, another Chinese model, gained 4.89%, but all four US models lost money. Nof1 stated that these early results might be due to chance and will include more rigorous testing in later rounds. The experiment shows that Chinese AI systems are starting to compete with Western companies.

OpenAI news boosts Nvidia stock outlook

OpenAI's recent partnership changes with Microsoft could lead to an IPO and more growth. This is good news for Nvidia, which makes chips for AI. OpenAI's goal to create artificial general intelligence will need many more GPUs, and CEO Sam Altman wants to increase their GPU count from 1 million to 100 million. OpenAI is now valued at $500 billion, and an IPO could raise $60 billion at a $1 trillion valuation. Nvidia, already a $5 trillion company, is the top maker of AI accelerator chips and stands to benefit greatly from OpenAI's expanding needs.

Nvidia reaches $5 trillion market value

Nvidia's stock recently hit a record high, pushing its market value to $5 trillion. Despite this large size, some believe the stock is still affordable. Nvidia dominates the AI accelerator market, which is expected to grow 33% annually until 2030. The company also generates $45 billion in free cash flow. While its P/E ratio is 60, higher than the S&P 500 average of 32, this is common for high-growth AI stocks. Nvidia's first-mover advantage and strong market leadership make it attractive to investors, even with rival AMD planning new accelerators.

Two AI data center stocks to consider

Two AI data center stocks, Applied Digital and Core Scientific, show strong potential. Applied Digital builds AI campuses and secures long-term leases, like a $5 billion, 15-year lease for 200 megawatts at Polaris Forge 2. This provides steady income. Core Scientific operates a large US data center platform, hosting 200 megawatts for CoreWeave and planning 900 megawatts for AI. Core Scientific recently turned down a $9 billion buyout offer from CoreWeave to remain independent. This allows them to work with many customers and secure more power capacity.

Top ETF for AI infrastructure investment

The Global X Data Center & Digital Infrastructure ETF (DTCR) is a strong choice for investing in AI infrastructure. This ETF focuses on data center operators and digital infrastructure, not software or chip companies. Major tech companies like Amazon, Microsoft, and Alphabet are spending $350 billion this year on AI data centers and chips. The fund, which is up 35% year to date as of November 2025, holds top data center REITs like Equinix and Digital Realty Trust. These companies have existing power systems and long-term contracts, providing stable income as hyperscalers invest heavily in AI.

Palantir shares drop after big gains

Palantir Technologies Inc. shares fell about 3% in extended trading, even after rising 7% earlier. The company's price-to-sales ratio was 85, which is the highest in the S&P 500 Index. An analyst from D.A. Davidson, Gil Luria, stated that these numbers are not connected to the company's basic financial health.

Cisco sees higher value with AI growth

Cisco Systems Inc. (CSCO) has seen its Fair Value Estimate increase from $75.81 to $76.96. Analysts raised their predictions for revenue growth and used a slightly lower discount rate. These changes show new trust in Cisco's future. There is growing excitement about new chances in artificial intelligence and enterprise networking for the company.

SoftBank shares surge amid AI investments

SoftBank Group's share price has jumped significantly, rising 173.5% this year and 183.4% over the past 12 months. However, the stock recently dropped 3.9% in one week, showing both strong growth and some instability. This surge comes as SoftBank focuses more on investments in artificial intelligence.

Four AI stocks report earnings this week

Four high-growth AI stocks, including Astera Labs and Super Micro Computer, are set to report their earnings this week. Recent updates are affecting these companies in the AI market. Investors are watching closely as these reports could influence the market.

Meta invests $600 billion in AI infrastructure

Meta plans to spend up to $600 billion over the next three years on AI infrastructure, including data centers and AI talent. This massive investment, highlighted in its latest earnings report, caused operating expenses to rise by $7 billion and capital expenditures by nearly $20 billion. CEO Mark Zuckerberg emphasized the company's commitment to developing advanced AI models in its Superintelligence Lab. Despite this, Meta's stock dropped 12%, losing over $200 billion in market value, as investors seek clear revenue-generating AI products from these large investments.

Navitas partners with Nvidia for AI power

Navitas Semiconductor Corporation (NVTS) reported lower sales of US$10.11 million and a net loss of US$19.23 million for Q3 2025. The company is now shifting its focus from consumer products to high-power areas like AI data centers and industrial electrification. A key part of this change is a new partnership with NVIDIA. Navitas will be a power semiconductor partner for NVIDIA's next-generation 800V DC AI factory architectures. This move could greatly change the investment outlook for NVTS stock.

Tempus AI stock drops despite good earnings

Tempus AI's shares fell almost 5% during regular trading and another 6.5% after hours, despite the company reporting strong third-quarter numbers. The medical diagnostic company, led by CEO Eric Lefkofsky, develops AI-driven tests for cancer and genetic sequencing. Tempus AI reported sales of $334.2 million, beating expectations, and a smaller adjusted loss per share of $0.11. The company also gave full-year 2025 guidance of about $1.265 billion, which was higher than forecasts.

Sources

NOTE:

This news brief was generated using AI technology (including, but not limited to, Google Gemini API, Llama, Grok, and Mistral) from aggregated news articles, with minimal to no human editing/review. It is provided for informational purposes only and may contain inaccuracies or biases. This is not financial, investment, or professional advice. If you have any questions or concerns, please verify all information with the linked original articles in the Sources section below.

Alibaba AI Qwen DeepSeek AI Models Crypto Trading Investment Competition Alpha Arena GPT-5 Grok AI Performance Chinese AI US AI AI Chips Nof1 OpenAI Nvidia Microsoft AI Infrastructure GPUs Semiconductors Stock Market AI Investment AGI AI Data Centers Applied Digital Core Scientific CoreWeave ETFs REITs Hyperscalers Palantir Cisco Enterprise Networking SoftBank AI Stocks Earnings Meta Superintelligence Lab Navitas Semiconductor Power Semiconductors Partnerships Tempus AI AI in Healthcare Medical Diagnostics Cancer Genetic Sequencing

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