In recent developments, a Chinese artificial intelligence company named DeepSeek has inadvertently sparked significant market movements. The firm's association—or lack thereof—with several public companies in China has led to notable stock price fluctuations. This situation highlights the speculative nature of investment rumors and their impact on financial markets.

Market Reactions and Clarifications Surrounding DeepSeek

On a tumultuous Monday, U.S. tech stocks experienced a dramatic sell-off, with Nvidia's shares plummeting by nearly 20%. Meanwhile, in China, the buzz around DeepSeek caused an unexpected surge in the stock prices of several publicly traded companies allegedly linked to it. However, these claims remain unsubstantiated. Companies like Huajin Capital and Zhejiang Orient saw their stock prices soar by the legal maximum daily gain of 10%, while Sublime China Information jumped by 20% based on rumored collaborations with DeepSeek.

Despite these gains, Sublime China Information officially denied any cooperation with DeepSeek in a public disclosure. Similarly, Huajin Capital refuted claims of investing in DeepSeek to a prominent Chinese business news outlet. Zhejiang Orient has yet to comment on the matter, but there is no public evidence supporting its involvement with DeepSeek.

The origin of these rumors appears to be from unverified lists circulating online, which have gone viral, linking various public companies to DeepSeek. As a private entity, DeepSeek has not disclosed any venture capital investments. Corporate records show that the company's founder, Liang Wenfeng, holds all beneficial ownership through three entities forming DeepSeek. Funding for DeepSeek primarily comes from High-Flyer, a quantitative firm led by Wenfeng himself. In previous interviews, Wenfeng mentioned discussions with potential investors but noted that venture capitalists were hesitant due to the company's research-focused approach rather than commercialization priorities.

DeepSeek did not respond to requests for comment on this matter.

From a journalistic perspective, this incident underscores the importance of verifying information before making investment decisions. It also highlights the volatility of markets when driven by speculative rumors. Investors should exercise caution and seek reliable sources to avoid being misled by unsubstantiated claims. The episode serves as a reminder of the need for transparency and accurate communication in the financial sector.