DeepSeek, the Hangzhou-based artificial intelligence startup, has told a subset of prospective backers that it is putting its second funding round on hold for now, according to reports citing people familiar with the matter. Company representatives verbally informed some potential investors that they would not be signing investment agreements in the coming days, and indicated the fundraising process may be resumed at a later date.
The suspension follows what has been described as founder Liang Wenfeng's frustration with online reports about comments he made to investors during DeepSeek's inaugural fundraising effort. That initial round raised about $7.4 billion, and the company had been preparing a new round at a targeted valuation of roughly 500 billion yuan - equivalent to about $74 billion.
Statements accompanying the account emphasize uncertainty over timing. While some prospective backers were told that near-term signings would not proceed, the company reportedly left open the possibility of restarting the fundraising process at a later point.
Media reports noted that Reuters could not immediately verify the account. DeepSeek was not reachable for comment outside regular business hours, and therefore did not provide a response to the pause or the reported reasons behind it.
In an additional development reported previously, DeepSeek has begun early-stage deliberations on a potential initial public offering on Shanghai's Nasdaq-style STAR Market. Those discussions were described as preliminary.
For market participants and observers, the developments highlight two parallel threads: the company navigating investor relations and public perception following a high-profile maiden raise, and management considering public listings as an alternative path for raising capital. The exact timetable for resuming the private fundraising or advancing any IPO deliberations was not specified in the reports.
Key facts reiterated
- DeepSeek verbally told some prospective investors they would not be signing investment agreements in the coming days.
- The company may restart the fundraising process at a later date.
- DeepSeek's founder Liang Wenfeng reportedly reacted to online reports about comments he made during the first fundraising round.
- DeepSeek's maiden funding raised about $7.4 billion; the new round had aimed for a valuation near 500 billion yuan ($74 billion).
- Earlier reporting indicated the company has begun early deliberations on a possible IPO on Shanghai's STAR Market.