DeepSeek Delays Fundraising Plans
Synopsis
The Chinese AI firm has reportedly put its second fundraising round on hold despite targeting a $74 billion valuation.
DeepSeek, the artificial intelligence firm of China, has put a temporary pause on its second round of financing due to investigations, as per sources privy to the development.
The development follows two consecutive remarks by the company's founder Liang Wenfeng during private investment pitches where he is said to have expressed his fascination for AGI (artificial general intelligence) rather than market shares.
The development of funding comes as a setback for DeepSeek following the initial round of outside funding worth approximately 50 billion yuan ($7.4 billion). The artificial intelligence company was planning on raising a further 50 billion yuan at a pre-money valuation of approximately 500 billion yuan ($74 billion), as per Reuters reports.
The fund raising is also considered a part of going public in the future, however, there are no plans regarding its IPO yet.
Investor Talks Put on Hold
According to those involved in the negotiations, several investors were informed that the events set for signing will not take place. However, the funding has not been canceled, and DeepSeek may resume negotiations at a later date.
Through the development of its open-source artificial intelligence (AI) models in the beginning of this year, DeepSeek has established itself as one of the best AI companies in China.
Annual revenue generated by DeepSeek stands at about $400 million to $500 million, mainly through enterprise use of the company's AI models.
AI Investment Competition Continues
This is one among the various recent developments that have been taking place in both the US and China in connection with the race for investments in AI.
While in the US the investment by VC firms has plateaued at $267 billion, China has witnessed an investment of around $20 billion in Q1 2026, as per the reports by KPMG Venture Pulse mentioned, indicating the divergence in the two biggest markets of artificial intelligence in the world.
Furthermore, the Chinese firm, DeepSeek has managed to raise money from investors like Tencent, CATL, JD.com, and National Artificial Intelligence Industry Investment Fund of China.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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