Firms linked to Alice Huang invest in DeepSeek to supply Nvidia chips

The DeepSeek Investment

Companies associated with Alice Huang recently participated in a significant funding round for the Chinese artificial intelligence firm DeepSeek. The investment was made by Century Litung and its parent company, the Shanghai-listed Jiangsu Lettall Electronics. These two entities are commonly referred to by the industry as "Litung."

According to a report by 디지털투데이, the investment took place during DeepSeek's second funding round, which ran from July to October. This specific round was valued at 105.5 billion yuan, which converts to approximately $15.8 billion. During this period, the company reached a valuation of about 615.5 billion yuan, or roughly $92 billion.

While Litung is a participant in this round, it does not appear on DeepSeek's official shareholder list. This is because the investment was funneled through special purpose vehicles, which are legal entities created for a specific, limited purpose. These structures are often used to manage complex financial transactions or maintain a level of privacy regarding ownership.

Links to Alice Huang

The involvement of Litung has drawn attention due to its connection to Alice Huang. Huang is a figure who was in a relationship with former Nvidia CEO Jensen Huang and has faced various suspicions regarding her ties to Chinese intelligence. However, the report notes that Huang has never held any executive positions or direct stakes in Century Litung or Lettall.

The connection between Huang and the investing firms was established by tracing corporate transactions and past equity ties. These links were specifically identified through the activities of Huang’s sisters and her husband, Kang Wei. This indirect relationship suggests a web of corporate interests that links high-profile figures to the hardware supply chain.

The presence of these links adds a layer of complexity to the narrative surrounding the investment. It suggests that entities connected to individuals with close ties to Nvidia leadership are finding ways to interact with Chinese AI firms. This creates a complicated picture of how influence and capital move between the two tech giants.

Bypassing Chip Bans

A primary motivation for this investment appears to be the procurement of advanced hardware. DeepSeek employees reportedly informed several investors that Litung is a key player in the black market for Nvidia AI chips. Specifically, these firms are said to supply large quantities of Nvidia's Blackwell chips to the Chinese market.

The Blackwell chips are currently banned from being sold in China due to international trade restrictions. By investing in DeepSeek, the Litung firms may be attempting to strengthen ties to ensure a steady flow of these high-end components. This allows DeepSeek to access the computing power necessary to train and run large-scale artificial intelligence models.

The use of the black market highlights the difficulty of enforcing export controls on high-demand technology. When advanced chips are restricted, they often find their way into restricted regions through third-party intermediaries. This dynamic creates a significant challenge for regulators trying to manage the global distribution of sensitive hardware.

The Competitive Landscape

DeepSeek's second funding round was highly competitive, attracting a total of about 30 different investors. Among these participants were some of the largest names in the region, including Tencent and CATL. These major players provide the capital and infrastructure needed to scale DeepSeek's operations significantly.

DeepSeek employees reportedly argued that Litung deserved an allocation in this round because of its unique role in the supply chain. By positioning themselves as a reliable source for banned Nvidia hardware, Litung carved out a niche that other investors might not have been able to fill. This suggests that hardware access is becoming a primary currency in the AI investment space.

The participation of major firms like Tencent and CATL alongside smaller, more specialized entities like Litung shows the diverse nature of AI funding. It reflects a landscape where massive corporate backing meets specialized, sometimes gray-market, logistical capabilities. This combination is what allows Chinese AI firms to continue developing despite significant external pressures.

Future Implications

The reported investment highlights the ongoing struggle to contain the flow of advanced semiconductors. As long as demand for Blackwell chips remains high, the incentives for creating workarounds will persist. This could lead to more sophisticated methods of moving hardware across borders, potentially involving even more complex corporate structures.

For the reader, this story illustrates how the AI boom is not just about software and research, but also about the physical hardware that powers it. The ability to secure chips is a major competitive advantage that can determine which companies succeed in the long term. It also shows how personal and corporate networks can influence the movement of critical technology.

Moving forward, it will be important to watch how regulators respond to these types of indirect investments. If special purpose vehicles continue to be used to obscure the flow of capital and hardware, it may lead to stricter oversight of corporate ties. The intersection of personal relationships, black market logistics, and high-tech investment remains a critical area to monitor.