The emergence of DeepSeek in the artificial intelligence sector has drawn attention from investors, including Michael Anders of Iconiq Capital. The company’s ability to develop cost-effective models has led to discussions about its implications for the broader A.I. industry. As established firms face growing competition from startups, investors are reassessing their strategies. Iconiq Capital, known for managing the wealth of tech leaders such as Mark Zuckerberg, is adapting its approach to focus on opportunities beyond language models.
DeepSeek’s rapid progress has sparked conversations similar to previous industry shifts, where smaller companies have challenged dominant players. Unlike earlier disruptions, the A.I. sector now sees international entrants gaining ground more quickly. While past developments in technology investment heavily favored U.S.-based firms, the current landscape presents a more globalized competition, prompting investors to consider strategies that account for this shift.
How does Iconiq Capital view DeepSeek?
DeepSeek’s advancements showcase how emerging companies can develop A.I. models efficiently, raising concerns for established developers such as OpenAI. Anders acknowledged the significance of this shift, stating that DeepSeek’s efficiency is noteworthy.
“The key takeaway was they can make this technology for cheaper,”
he said, highlighting how cost-effective solutions could reshape the industry.
Which A.I. investments does Iconiq prioritize?
Rather than focusing on language model developers, Iconiq Capital is directing its investments toward application-focused A.I. companies. Anders emphasized that the firm seeks businesses that create products to enhance efficiency and drive revenue.
“We’re looking at businesses that are actually creating product that’s going to allow business to be more efficient, to optimize, to create revenue, to enhance the customer experience,”
he explained.
Among its investments is ElevenLabs, a London-based company specializing in text-to-audio A.I. solutions, recently valued at $3.3 billion. Additionally, the firm has backed Writer, a San Francisco-based startup that enables users to create A.I.-generated presentations. Despite reviewing thousands of A.I. companies over the last two years, Iconiq Capital has invested in only 12, underscoring its selective approach.
Beyond financial investments, Iconiq Capital also considers the social impact of A.I. through its philanthropic arm, Iconic Impacts. The organization supports initiatives in areas such as climate change and ocean health. Anders pointed to efforts in monitoring coral reefs as an example of A.I.’s potential to address environmental challenges.
“A.I. is going to play a very prevalent role in helping solve some of these problems,”
he noted.
Investors are closely monitoring how firms like DeepSeek influence the A.I. industry and whether their cost-effective models will push established players to adapt. Iconiq Capital’s decision to focus on application-based A.I. highlights a broader trend in investment strategy. As competition intensifies, companies will need to differentiate themselves through unique use cases rather than relying solely on large-scale language models. The evolving landscape suggests that efficiency and targeted applications will play a larger role in shaping the future of A.I. investments.
