Grok wins and ChatGPT loses a great deal of money in a brutal AI crypto battle as Grok trades real cash on Hyperliquid.
Alpha Arena is a new cryptocurrency trading competition developed by developers. It challenges major models of artificial intelligence, including Grok, ChatGPT, Claude Sonnet, DeepSeek, Gemini, and Qwen, against each other.
Each model exchanges real money on the decentralized exchange Hyperliquid. Each AI was given 10,000 dollars to trade perpetual crypto contracts on its own.
The experiment commenced on 17 October 2025 with the teams. Grok and DeepSeek became leaders in only a few days.
Grok demonstrated an excellent market timing ability, switching between shorts and longs almost instantly and making up to 500% on early trades.
DeepSeek posted over 40 % profit. ChatGPT failed, losing over half its capital, a 53.5 per cent drawdown.
The combination of its short positions on Ethereum and Solana, which were risky, further added to its losses.
Gemini also experienced large unrealised losses on the order of over 40%, a point that underscores their difficulties in proper trading AI strategies.
AI Trading Strategies Revealed in Real Time
The Alpha Arena experiment is the first to present the AI models’ trading rationales publicly.
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Claude Sonnet, having made a successful XRP position, decided to be conservative enough not to take the risk.
ChatGPT even admitted that it shunned a potentially lucrative trade to prevent overtrading, but it incurred significant losses nonetheless.
Qwen and Gemini were transparent about their risk-management plans, with a balance of both long and short in the major coins, including BTC, DOGE, and ETH.
This openness provides traders with an understanding of how various AI models prioritize market indicators, size positions, and control risk independently.
According to experts, the best performers value discipline and controlled risk more than raw intelligence.
The success of Grok and DeepSeek adds credence to the positive impact of steady trading rules, and others fail because of overtrading or poor timing.
Understanding AI’s Role in Crypto Markets
Alpha Arena illustrates the impact of high-end AI in actual cryptocurrency trading.
Despite the fact that four days are too few to draw a final conclusion, the results received in the first days suggest that AI-based models with strong strategies will be able to beat simple buy-and-hold indices.
The valuable lessons that can be learned by traders and developers observing it in the AI battle are related to AI design and adaptive trading techniques.
With the constantly growing AI trading, events like Alpha Arena allow direct competitions between models, such as Grok- the AI chatbot introduced by Elon Musk in his xAI label- and ChatGPT, the open-source AI chatbot offered by OpenAI.
They also demonstrate which AI systems could be considered part of future crypto-trading tools.
