DeepSeek Suspends $71 Billion Fundraising Round After Founder Leak

AI startup DeepSeek suspended its second fundraising round after leaked comments from founder Liang Wenfeng went viral on Chinese social media. Liang reportedly told private investors that China lags behind the United States in AI capability and remains heavily dependent on Nvidia chips despite U.S. export restrictions. Following the leak, Liang verbally notified prospective investors that investment agreements would not be signed for the time being, though he indicated the process may resume later.

The paused round targeted a pre-money valuation estimated between 480 billion and 500 billion yuan ($71 billion to $74 billion). This follows a first funding round closed in June, which raised approximately $7 billion to $7.4 billion from investors including Tencent, CATL, and the National Artificial Intelligence Industry Investment Fund.

Despite the funding freeze, the company has begun early deliberations regarding a potential initial public offering on the STAR Market in Shanghai and may file for the IPO as soon as this year.