Chinese AI company DeepSeek reminded Western investors of the global competition in the AI race, especially in China, where large language models can be developed and trained at a fraction of the cost of Mag7 companies. This sparked global sales throughout the AI complex as investors worry about “negative capital impacts” and return on investment over hefty AI investments.
In a separate development, the DeepSeed API landing page posted the following warning around noon: “Due to extensive malicious attacks on DeepSeed services, registration may be busy. Please wait and try again. Registered users can log in normally. Thank you for your understanding and support.”
The Hangzhou-based company continued: “To ensure continued service, registration is temporarily limited to +86 phone numbers. Existing users can sign in as usual.”
DeepSeek did not disclose who was behind the “attacks” or where they originated. However, given that hundreds of billions of dollars of market capitalization were swept out of Mag7 shares (-$700 billion), coupled with a huge AI narrative shift, one can reasonably speculate about where the attacks are coming from, directly or indirectly through proxy groups.
Our forensic analysis of Chinese public documents provides a more in-depth look at DeepSeek.
Business purpose:
Hangzhou Deep Quest Artificial Intelligence Basic Technology Research Co., Ltd., whose office address is located in Hangzhou, the capital of Zhejiang province, and in a paradise on earth, room 1201, Building 1, West Huijin International Building, No. 169 North Huancheng Road, Gongshu District, Hangzhou City, Zhejiang Province (registered address), our company mainly offers: engineering and technical research and experimental development; technical services, technical development, technical advice, exchange, transfer of technology and promotion of technology; software development; computer system services; information systems integration services; software development for artificial intelligence applications; information technology advisory services; sale of electronic products; sale of communication equipment; sale of instruments; data processing services; Internet data services; retail sale of computer software, hardware and auxiliary equipment; sales of artificial intelligence hardware; professional design services.
Upstream Ownership (Founder: Liang Wenfeng):
Additional public records data for DeepSeek:
The training costs of DeepSeek’s latest LLM are said to be about $6 million — far less than the hundreds of billions of dollars that the Mag7 companies spent.
PitchBook data shows a recent surge in money…
Meanwhile, Bernstein analyst Stacy Rasgon told clients, “Did DeepSeek really build OpenAI for $5 million? Of course not,” adding, “It seems like a stretch to think that the innovations being introduced by DeepSeed are completely unknown to top-notch AI scientists in the world’s other numerous AI labs.”
However, if DeepSeek did…
Latest DeepSee reports:
- China’s DeepSeed AI moves to tech capital Palo Alto to Hangzhou
- China’s DeepSeed bomb shakes Trump’s $500 billion AI Boondoggle
- Goldman asks if China’s DeepSeek is AI Sputnik Moment
- How Goldman Trades DeepSeed Shock
- “Bad things can happen” – this chart no longer makes sense if DeepSeek is a real deal
- DeepSeek pulls the rug out of Nvidia, ASML
- DeepSeek could trigger “negative capex impact” as the Peak Data Center’s occupancy forecast faces review
. . .
