The Hidden Backing of DeepSeek

DeepSeek presents itself as an independent, cutting-edge AI research organization, but the reality may be far from the image they project. Behind the scenes, there is mounting evidence suggesting that DeepSeek is actually backed by one of the largest hedge funds in China. The lack of transparency around their funding raises serious questions about their true motives and the larger game they are playing in the AI and semiconductor markets.

FUDding the Chip Market: A Coordinated Attack?

One of the most concerning aspects of DeepSeek’s recent activities is their potential role in spreading fear, uncertainty, and doubt (FUD) in the semiconductor industry. Over the past several months, key narratives have emerged that cast doubt on NVIDIA’s long-term prospects, conveniently aligning with DeepSeek’s rise. If you look closely, this pattern fits a well-known financial strategy: FUD high, buy low.

By stoking fear about chip shortages, geopolitical risks, and regulatory crackdowns, DeepSeek—or those backing it—may have intentionally driven down semiconductor stock prices. If NVIDIA rebounds in the next three months, as many experts predict, this would perfectly validate the theory: they created panic, bought at a discount, and will cash in as the recovery unfolds.

The Stolen Chips and Distilled LLMs Connection

Beyond financial manipulation, DeepSeek is also accused of acquiring high-end chips through questionable means. Reports suggest that they may have obtained NVIDIA’s top-tier GPUs through unofficial channels, bypassing restrictions and undercutting competitors in the AI race. Additionally, their AI models seem suspiciously refined for a company without a massive in-house dataset or compute infrastructure.

This raises the alarming possibility that DeepSeek has distilled OpenAI’s models, leveraging stolen knowledge rather than developing innovations independently. By refining and repackaging existing work under their own brand, they create the illusion of originality while relying on illicitly obtained data and architectures.

The $5 Million Illusion: LLM Development Costs

DeepSeek claims to have built its large language model (LLM) with just $5 million, a figure that raises immediate red flags. Developing a cutting-edge LLM requires an immense amount of computing power, high-quality datasets, and expert researchers—costing far more than a mere $5 million. For comparison, OpenAI has spent billions developing its top-tier models. The notion that DeepSeek could achieve similar performance at a fraction of the cost suggests either hidden funding sources or reliance on stolen AI models.

If DeepSeek truly built a competitive LLM on such a limited budget, it would defy industry standards and economic feasibility. A far more likely scenario is that they are obscuring their actual costs and financial backers, making it appear as if they accomplished the impossible while quietly benefiting from billions in undisclosed funding.

Connecting the Dots: A Classic Pump-and-Dump Play?

If NVIDIA and the broader AI chip sector recover in the coming months, it will serve as the final proof that DeepSeek’s backers manipulated the market to their advantage. The timeline fits perfectly:

  1. Spread FUD – DeepSeek’s emergence coincided with growing fears about the AI chip supply chain, U.S.-China tensions, and potential sanctions.
  2. Drive Down Prices – These fears resulted in downward pressure on key AI stocks, particularly NVIDIA.
  3. Acquire Assets at a Discount – Hedge funds backing DeepSeek likely loaded up on undervalued assets.
  4. Stage a Comeback – Once the market stabilizes, their investments will surge in value.

The Takeaway: Don’t Fall for the Illusion

DeepSeek isn’t just another AI research firm. It’s part of a larger financial strategy that exploits the intersection of technology, finance, and geopolitics. The lack of transparency around their funding, their potential role in FUDding the chip market, their likely reliance on stolen AI models, and their implausible claims about LLM development costs make it clear: DeepSeek is playing a game that goes beyond research—it’s a calculated financial operation.

If NVIDIA and the chip market recover in the next three months, this theory will be proven beyond a doubt. Watch the trends closely and don’t be fooled by the illusion of independent innovation—DeepSeek is part of a much bigger play.