DeepSeek Suspends Second Financing Round Amid Founder Dissatisfaction

DeepSeek halts its second funding round, originally targeting 10 billion yuan, due to founder Liang Wenfeng's concerns over leaked private investor conversations from the $7B first round.

Woofun AI reports that Chinese AI firm DeepSeek has notified potential investors of a suspension in its second financing round. The pause stems from founder Liang Wenfeng’s dissatisfaction with media disclosures regarding private discussions held during the initial funding phase, which closed in June with $7 billion in capital from backers including Tencent, CATL, and the National AI Fund.

The halted second round was intended to secure at least 10 billion yuan against a pre-investment valuation of 480 billion yuan. DeepSeek is currently preparing for an initial public offering, with an application submission possible as early as this year. Negotiations remain active, leaving open the possibility of resuming financing efforts.