Chinese artificial intelligence startup DeepSeek has suspended its second fundraising round, according to Bloomberg News reporting cited by Reuters, after prospective investors were verbally informed that investment agreements would not be signed in the coming days. The pause follows a maiden round that raised about $7.4 billion and comes amid founder Liang Wenfeng’s frustration over media reports detailing remarks he made to backers.
DeepSeek Suspends Fundraising Negotiations
Chinese artificial intelligence startup DeepSeek has halted discussions regarding its second fundraising round, Bloomberg News reported, citing people familiar with the matter. According to the report, DeepSeek verbally informed potential backers that formal investment agreements would not be signed in the immediate future.
Sources speaking to Bloomberg indicated that the Hangzhou-based company might resume the deal process at a later date. Reuters could not immediately verify the report, and DeepSeek could not immediately be reached for comment outside of regular business hours.
Industry Context: DeepSeek previously completed a successful maiden funding round that brought in approximately $7.4 billion. The startup had planned to launch its fresh fundraise targeting a valuation of about 500 billion yuan ($74 billion).
Founder Frustration Sparks the Pause
The sudden suspension was driven in part by DeepSeek founder Liang Wenfeng’s frustration over online reports detailing comments he made to investors during the startup’s initial fundraising round, Bloomberg News reported.
Despite the temporary halt in private fundraising discussions, the company has also explored public market options. Reuters reported that DeepSeek had started early deliberations concerning a potential initial public offering on Shanghai’s Nasdaq-style STAR Market.
Frequently Asked Questions
Why did DeepSeek suspend its fundraising round?
According to Bloomberg News, the pause was driven in part by DeepSeek founder Liang Wenfeng’s frustration over online reports concerning comments he made to investors during the startup’s first fundraising round.
What valuation was DeepSeek targeting for this funding round?
DeepSeek had planned to launch the fresh fundraise at a valuation of about 500 billion yuan, roughly equivalent to $74 billion, following an earlier maiden round that raised about $7.4 billion.
Is DeepSeek planning an IPO?
Reuters reported that DeepSeek has started early deliberations regarding a potential initial public offering on Shanghai’s STAR Market.
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