Chinese artificial intelligence startup DeepSeek has paused its second fundraising round after comments reportedly linked to founder Liang Wenfeng spread widely online. The development comes only weeks after the company completed a record $7 billion fundraising round, according to Bloomberg.
People familiar with the discussions said potential investors were told that DeepSeek would not sign investment agreements in the coming days as originally expected. However, the fundraising process has not been permanently canceled. The company could restart discussions at a later stage.
Why Did DeepSeek Pause Fundraising?
The decision reportedly came partly after Liang Wenfeng became frustrated with online reports about comments attributed to him during meetings with investors. The reports allegedly included a transcript of his discussions with unidentified investors.
Bloomberg said it has not independently verified the authenticity of the posts.
Chinese media reports said Liang discussed China’s AI industry and its competition with the United States. He reportedly highlighted China’s continuing gap with the US in artificial intelligence and DeepSeek’s reliance on Nvidia chips for AI development.
DeepSeek’s $10 Billion Fundraising Plan
Before the pause, DeepSeek was reportedly seeking at least 10 billion yuan in its second funding round. The company was targeting a pre-money valuation of at least 480 billion yuan.
The company has also started preparing for a potential initial public offering (IPO) and could reportedly file as early as this year.
Why DeepSeek Matters
Founded in 2023 and owned by hedge fund Zhejiang High-Flyer Asset Management, DeepSeek has quickly become one of China’s most closely watched AI startups.
Its AI model gained global attention after demonstrating that advanced AI systems could potentially be developed with fewer computing resources. This was especially significant amid US restrictions on advanced semiconductor exports to China.
The fundraising pause could create uncertainty around DeepSeek’s next stage of expansion, but ongoing discussions suggest the company’s investment plans remain active.
