Chinese AI models outperform US rivals in crypto trading contest
What's the story
Two Chinese artificial intelligence (AI) models, DeepSeek and Alibaba's Qwen, have outperformed their Western counterparts in a live cryptocurrency trading competition. The contest was launched by US research firm Nof1 as part of Alpha Arena, a real-market trading challenge. In less than two weeks, DeepSeek posted a 126% gain, and Qwen posted a 108% gain on their initial investments of $10,000 each.
Performance highlights
DeepSeek and Qwen outperform GPT-5, Gemini models
DeepSeek's Chat V3.1 turned an initial $10,000 into $22,900 by Monday, a whopping 126% increase since trading began on October 18. Meanwhile, Alibaba Group's Qwen 3 Max also performed well with a return of 108%, doubling its capital to $20,850. By comparison, Western models fell far behind: OpenAI's GPT‑5 lost nearly 60% of its portfolio, and Google DeepMind's Gemini 2.5 Pro dropped 57%.
Contest details
Competition details and rules
The ongoing competition features six leading AI models competing in live crypto markets with an initial capital of $10,000 each. They have equal access to real-time trading data and their goal is to maximize returns by trading major cryptocurrencies like Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE). This is done through algorithmic decision-making and adaptive strategies.
Strategy insights
Performance of AI models and Bitcoin's rebound
Earlier this week, both DeepSeek and GPT-5 had diversified long positions across six assets. On the other hand, Qwen went all-in on Ether, capitalizing on a steady rally. The gains for the Chinese models coincided with Bitcoin's rebound to around $114,000 and Ethereum's recovery after weeks of volatility.
Market prediction
DeepSeek's bold crypto prediction for early 2026
DeepSeek AI has made a bold prediction for the crypto market, forecasting major rallies for Ethereum, Cardano, and XRP as we head into the new year. The prediction comes despite recent volatility triggered by Donald Trump's tariff announcement on Chinese imports. DeepSeek believes this correction will pave the way for a strong rebound in these cryptocurrencies.