Chinese AI startup DeepSeek suspended its second funding round after founder Liang Wenfeng’s comments leaked online. Liang reportedly paused the process due to frustration over the circulation of his remarks regarding China’s reliance on Nvidia chips. His leaked statements also highlighted a significant gap in AI capabilities between China and the United States.
The now-halted funding round targeted at least 10 billion yuan. This target represents approximately $1.4 billion in capital. The round aimed for a total company valuation of roughly $71 billion.
This suspension follows an initial record-breaking funding round of $7 billion closed just weeks ago. DeepSeek continues to prepare for a potential initial public offering despite the funding pause.