Speculation is emerging that DeepSeek (Shendu Qiusuo), a prominent Chinese artificial intelligence (AI) startup, may have temporarily suspended its ongoing second fundraising drive, following its initial external funding round estimated at approximately 51 billion yuan (11.067 trillion won).

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Liang Wenfeng, founder of DeepSeek, who is reportedly known to have recently suspended his second fundraising drive. / Economic Daily

According to Beijing sources familiar with China's ICT (information and communications technology) industry on the 26th, this news reportedly comes after a Chinese media outlet reported on closed-door remarks made by DeepSeek founder Liang Wenfeng at an investor event. DeepSeek is also said to have informed some investors participating in the second fundraising round that it will temporarily suspend contract procedures. Sources said DeepSeek verbally conveyed this intention because, contrary to expectations, it will not be signing investment contracts for the time being.

The sources nevertheless projected that DeepSeek could potentially resume the contracting process in the future. However, it remains unclear whether DeepSeek has conveyed this intention to all companies seeking to participate in the second fundraising round.

According to the sources, DeepSeek appears to have sought to secure an additional 10 billion yuan or more through the second fundraising round. However, the final amount raised could potentially increase depending on the number of participating companies.

DeepSeek is famous for shaking up the landscape of the AI industry—once considered the exclusive domain of U.S. Big Tech with immense capital—by releasing a low-cost, high-performance open-source AI model in January last year. Last month, it raised around 51 billion yuan in its initial funding round, and its valuation was reportedly recognized at over 50 billion U.S. dollars (approx. 73.1 trillion won).

In addition, sources said DeepSeek has not only entered initial public offering (IPO) procedures, but is also preparing to submit an IPO application within this year with the goal of listing on the Chinese mainland stock market in 2027.

                                                                                                         Hong Soon-do