DeepSeek, Alibaba AI: Was Everything Planned?
In recent years, the global technology sector has gone through a meteoric rise in artificial intelligence (AI) advancements, particularly in the realms of natural language processing (NLP) and deep learning.
AI-driven products and services are no longer a distant dream but a rapidly evolving reality with tech giants and innovative startups competing for dominance.
The unfolding of this AI revolution has been accompanied by strategic market moves, often a way for debates about the influence of big corporations, the stock market, and the role of seemingly orchestrated events.
An apt example that has caught the attention of industry observers and social media is the sudden appearance of two competing AI platforms: DeepSeek and Alibaba AI.
In what appeared to be a carefully timed sequence of releases, DeepSeek, a groundbreaking AI model, debuted to rave reviews, only to be eclipsed by the launch of Alibaba’s own AI model, Alibaba AI, just two days later.
Also, read| DeepSeek: How A Chinese AI Chatbot Challenges US Tech Dominance
This led many to question whether these developments were part of a larger, more planned strategy designed to shape stock market movements, particularly with regard to major players like Nvidia.
While it’s difficult to prove with certainty whether everything was planned, the timeline, as well as the market reactions, suggest a level of strategic maneuvering that may have been far from coincidental.
When DeepSeek, an AI model developed by a company not as well-known as Alibaba, was released, it made waves in the tech world due to its impressive performance in a range of tasks, including text generation, image recognition, and real-time decision-making.
The AI community, as well as investors, took notice and the company behind DeepSeek saw its stock value rise sharply in the days following its release.
Also, read| DeepSeek’s AI Breakthrough: The End Of US Tech Monopoly.
However, just two days later, Alibaba AI was unveiled, an advanced AI platform that was considered a direct competitor to DeepSeek. Not only did Alibaba AI outperform DeepSeek in many areas, but it was also backed by one of the most well-established and profitable companies in the world, Alibaba Group.
Naturally, the announcement sent shockwaves through the market. Investors began to reassess their positions and stock prices of companies involved in AI development began to fluctuate significantly.
Nvidia’s stock plummeted 17% last week, sparking a broader market sell-off. The decline was triggered by China’s DeepSeek, raising concerns about AI investments and the emergence of more affordable AI alternatives.
Nvidia’s market value took a historic hit, shedding a staggering $589 billion in a single day which was the largest ever recorded loss. Similarly, OpenAI’s stock and Google shares plummeted, joining Nvidia in a sharp decline.
When the US banned advanced chips from going to China, most people thought Chinese AI was done.
But DeepSeek’s founder had other plans…
He secretly stockpiled over 50,000 Nvidia chips before the ban.
And then did something nobody expected – completely redesigned how AI… pic.twitter.com/SjF6G89Ago
— Mayank Gupta🧑🏻💻 (@waghnakh_21) January 27, 2025
Now people ask that the timing of these releases, DeepSeek followed by Alibaba AI seemed too perfect to be coincidental. Could this have been an orchestrated move to manipulate stock market outcomes or, at the very least, to leverage the market’s sensitivity to AI news for financial gain?
If companies like Alibaba, and even smaller players behind DeepSeek are aware of the market’s psychological tendencies and investor reactions, they might strategically time announcements to influence stock prices or gain leverage in negotiations.
However, the rapid rise of a powerful competitor like Alibaba AI, coupled with potential concerns about market oversaturation, led to short-term volatility in other’s stock. This pattern suggested that the AI market was subject to major external forces, that might be carefully manipulated by well-positioned companies to maximise profit or market dominance.
If DeepSeek was positioned as the leading AI model, investors would have been eager to jump on the bandwagon, buying shares in companies associated with its development. When Alibaba AI was released just days later, it caused a sharp reversal as investors scrambled to reassess their positions, fearing they might have backed the wrong horse.
Also, read| OpenAI Claims DeepSeek Used Its Proprietary Models To Train Rival System
This type of market psychology is not new. It is common for companies to time their product releases or public statements in ways that influence investor sentiment.
The “hype cycle” in the tech industry is a well-documented phenomenon, where early excitement can push stock prices up, only for reality to set in later, causing a correction. Companies often capitalise on these dynamics, knowing that the right timing can generate significant financial rewards.
While it is impossible to definitively prove that the sequence of events involving DeepSeek and Alibaba AI was planned, the timing and market reactions suggest a level of strategic thinking at play.
