In July 2025, the AI platform DeepSeek quickly gained global attention, ranking first in the U.S. and Chinese Apple App Stores and prompting major technology companies like Amazon and Microsoft to announce integrations with its model.
The Ark CIO Office observed that this rise reflects two critical challenges for global Chinese wealth managers:
- Geopolitical and economic uncertainty.
- The transformative impact of AI, digital assets, and disruptive technologies.
To explore investment implications, Noah Holdings (HKEX: 6686, NYSE: NOAH), through its global brand Ark , interviewed DeepSeek on:
- How to allocate a $10 million investment portfolio in 2025.
- Where to find AI investment opportunities.
- Whether its emergence changes AI investment logic.
Strategic Asset Allocation for 2025
DeepSeek proposed a diversified asset allocation strategy for high-net-worth investors:
- Equities (60%): Split between A-shares and international markets, with focus on consumer upgrades, technology growth, healthcare, dividends, and advanced manufacturing.
- Fixed Income (25%): A mix of government bonds, corporate bonds, and convertible bonds to reduce volatility and provide stable returns.
- Alternative Assets (10%): Gold as a geopolitical hedge and REITs benefiting from lower interest rates.
- Cash & Money Market (5%): For liquidity and tactical opportunities.
Risk control includes quarterly rebalancing, sector rotation based on economic conditions, and keeping drawdown within 10%.
Key AI Investment Opportunities
DeepSeek identified multiple high-potential AI sectors for 2025:
- Infrastructure: Compute chips, AI servers, data centers, and high-speed networking.
- Edge Devices: AI-powered glasses, PCs, and smartphones with on-device models.
- Generative AI Applications: Content creation tools, enterprise AI agents, and sector-specific solutions in healthcare, education, and finance.
- Robotics & Autonomous Driving: Growth in humanoid robotics and advanced driver assistance systems.
The Ark CIO Office noted that institutional investors are expanding their allocations to both AI infrastructure and application-driven technologies.
See also: FinVolution Group Earns Top Honors in Extel’s 2025 Asia Executive Team Awards
Shifting AI Investment Logic
DeepSeek’s low-cost model development—achieved with less than $6 million—challenges the “compute supremacy” mindset and shifts focus from hardware dominance to software and application innovation. Key market effects include:
- Repricing of AI hardware demand.
- Rising interest in cost-efficient AI models.
- Renewed attention to Chinese AI companies with competitive application-layer offerings.
While some investors see this as accelerating AI democratization, others believe hardware innovation will remain essential for long-term growth.
Final Takeaway
DeepSeek’s rise offers a case study in how disruptive innovation can reshape investment strategies. For investors working with Ark, the lesson is to combine diversified asset allocation with exposure to transformative technologies—balancing short-term risk management with long-term growth opportunities in AI.
