DeepSeek has halted its massive 2nd round of financing. The decision comes after a leaked 4 hour investor meeting transcript went viral online, revealing founder Liang Wenfeng speaking candidly about computing power shortages and the technology gap between China and the United States. According to reports citing people familiar with the matter, potential investors were verbally notified that the upcoming signing of investment agreements is officially on hold.
The controversy stems from an internal discussion where Liang spent more than 3 hours laying out his long term vision. During the meeting, he made it clear that DeepSeek values scientific breakthroughs over short term commercial monetization. He also pledged to focus on creating open source models to chase general artificial intelligence. This focus on pure research rather than fast cashouts resonated with local tech communities, but the breach of confidentiality left Liang highly frustrated.
This fundraising freeze occurs just weeks after DeepSeek secured a massive 1st round of funding. That earlier transaction raised $7 billion, valuing the company at roughly $50 billion. For the current 2nd round, the company intended to secure an extra 10 billion yuan to chase a pre money valuation of at least 480 billion yuan. These figures represent a massive jump in market valuation over a very short period.
Despite the current setback, the company still has options. Sources indicate that the financing process could resume later once the initial shock of the leak passes. The tech firm is also preparing for a public listing, with plans to file for an initial public offering as early as this year. This listing is poised to become one of the most closely watched market debuts in the local technology sector.
