DeepSeek Sparks Unfounded Surge in Chinese Stocks: What You Need to Know
In recent news, the Chinese AI company DeepSeek has made headlines globally, notably influencing a significant sell-off in U.S. tech stocks. On Monday, tech giant Nvidia’s shares plummeted by nearly 20%, highlighting the ripple effects of DeepSeek’s unexpected rise in popularity.
DeepSeek’s Impact on Chinese Stocks
The excitement surrounding DeepSeek has led to a surge in the stock prices of several Chinese companies rumored to be associated with it. However, the underlying truth remains questionable, as there is currently no substantial evidence linking these companies to DeepSeek.
Stock Price Movements
- Huajin Capital and Zhejiang Orient experienced a remarkable 10% increase in their stock prices.
- Sublime China Information saw a significant jump of 20% after claims of collaboration with DeepSeek on AI models.
These gains represent the legal maximum daily increases on Chinese exchanges, raising eyebrows about the authenticity of these associations.
Denials from Involved Companies
Despite the soaring stock prices, several companies have publicly denied any affiliation with DeepSeek:
- Sublime China Information refuted claims of cooperation with DeepSeek in an official disclosure.
- Huajin Capital denied to a Chinese business news outlet any disclosure regarding a potential investment in DeepSeek.
- Zhejiang Orient has not yet commented on the situation.
Moreover, there is no public evidence supporting their investment claims, further complicating the narrative surrounding DeepSeek.
The Source of Rumors
The rumors appear to be derived from unverified lists circulating on social media, suggesting various publicly traded companies have ties to DeepSeek. This has created an atmosphere of speculation rather than substantiated facts.
DeepSeek’s Funding Structure
DeepSeek, classified as a private company, has never made any public announcements regarding venture capital investments. According to Chinese corporate records, no VC firms are documented in DeepSeek’s capital table. The company’s founder, Liang Wenfeng, is noted as the sole beneficial owner of all three entities that constitute DeepSeek. Currently, DeepSeek is backed by the quantitative firm High-Flyer, where Wenfeng serves as CEO. He has indicated that there are no immediate plans for fundraising, as stated in a previous interview with the Waves media outlet.
Future Prospects and VC Hesitance
In a 2023 interview, Wenfeng mentioned that while he had discussions with various funding sources, many venture capitalists appeared hesitant to invest, primarily focusing on commercialization rather than research-driven initiatives.
As of now, DeepSeek has not provided any comments to TechCrunch regarding the ongoing situation. The volatility of the situation illustrates the delicate balance between speculation and reality within the rapidly evolving AI sector.
