DeepSeek has told prospective investors it is suspending its second fundraising round for now, according to a Bloomberg News report. The Chinese AI startup had planned to raise fresh capital at a valuation of about 500 billion yuan ($74 billion), and the pause is reportedly tied to its founder’s frustration over online reports about his comments.
DeepSeek has told prospective investors that it is suspending its second fundraising round for now, Bloomberg News reported Saturday, citing people familiar with the matter. The Chinese AI startup verbally informed some potential backers that they would not sign investment agreements in the coming days, though it might resume the process later.
Reuters could not immediately verify the report, and DeepSeek could not immediately be reached for comment.
Hangzhou-based DeepSeek had planned a fresh raise at a valuation of about 500 billion yuan ($74 billion). That followed a maiden round that raised about $7.4 billion. The first round drew backing from Tencent, CATL and a state-backed AI investment fund.
The suspension was reportedly driven in part by founder Liang Wenfeng’s frustration over online reports about comments he made to investors during the first fundraising round. Those comments concerned China’s AI capabilities and its reliance on Nvidia chips, according to Crypto Briefing.
Yet the retreat does not close the door on outside capital. Reuters reported last week that DeepSeek had also begun early deliberations on a potential IPO on Shanghai’s Nasdaq-style STAR Market.
Sources: Investing.com, Crypto Briefing
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