DeepSeek pauses funding after founder's leaked comments

Chinese AI startup DeepSeek has paused its second fundraising round after leaked comments from founder Liang Wenfeng went viral, according to Bloomberg. The company had been targeting a pre-money valuation of about $71 billion, but Liang asked investors to hold off after his candid remarks about Nvidia reliance and China's AI gap with the US were made public without permission Source: The Next Web.

The Leak and Its Fallout

A transcript of Liang's closed-door meeting with investors in May was leaked on Chinese social media, sparking widespread discussion. Liang reportedly expressed frustration that his words were shared publicly, leading to the funding halt Source: Gizmodo. The pause comes shortly after DeepSeek closed its first funding round in June, raising roughly $7 billion from investors including Tencent, CATL, and China's National AI Industry Investment Fund Source: The Next Web. Analysts view the pause as indirect confirmation of the leak's authenticity Source: Gizmodo.

Liang Wenfeng's Vision

Liang, who built his fortune through quantitative hedge fund High-Flyer, has emphasized a philosophy of "restraint" and open-source development Source: SCMP. He has stated that China must transition from a beneficiary to a contributor in AI technology Source: CNA. Despite the funding pause, DeepSeek is reportedly preparing for an IPO as soon as this year Source: The Next Web. The company is also designing its own AI chip to reduce reliance on Nvidia hardware Source: The Next Web.