DeepSeek Reportedly Halts Second Funding Round After Founder’s Comments Leak

Chinese artificial intelligence startup DeepSeek has reportedly suspended its planned second funding round after confidential remarks by founder Liang Wenfeng were leaked, Andrew Nusca reported for Fortune Tech.

DeepSeek has reportedly delayed its second fundraising round while continuing preparations for a potential IPO. [Photo: CGTN]

According to Bloomberg, Wenfeng privately discussed the continued gap between China's AI capabilities and those of the United States during a four-hour meeting with investors.

The leaked comments reportedly frustrated the founder, prompting DeepSeek to inform several prospective investors that planned investment agreements would not proceed as expected.

Despite the pause, DeepSeek's fundraising efforts appear far from over.

The company reportedly raised $7 billion just a month ago and had been seeking at least 10 billion yuan (approximately $1.5 billion) in additional funding to boost its valuation from roughly $50 billion to about $71 billion.

DeepSeek is also reportedly preparing for an initial public offering that could be filed as early as this year.