DeepSeek tells prospective investors of funding pause, Bloomberg News reports


The Deepseek logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration

July 25 (Reuters) - Chinese ⁠AI startup DeepSeek has told prospective investors ⁠in its second fundraising round that ‌it is suspending the deal for now, Bloomberg News reported on Saturday, citing people familiar with the matter.

Here are ​some details:

• DeepSeek verbally informed ⁠some of its ⁠potential backers that they would not be signing ⁠investment ‌agreements in the coming days, the report said.

• The company might resume ⁠the deal process at a later date, ​Bloomberg News ‌added.

• Reuters could not immediately verify the ⁠report. DeepSeek ​could not immediately be reached for comment outside regular business hours.

• Hangzhou-based DeepSeek planned to launch ⁠a fresh fundraise at a ​valuation of about 500 billion yuan ($74 billion), after a successful maiden round which raised about $7.4 billion.

• ⁠The pause was reportedly driven in part by DeepSeek founder Liang Wenfeng's frustration over online reports on comments he made to investors ​during the startup's first fundraising ⁠round.

• Reuters reported last week that DeepSeek had ​also started early deliberations ‌on a potential IPO on ​Shanghai's Nasdaq-style STAR Market.

(Reporting by Ananya Palyekar in Bengaluru, Editing by Louise Heavens)

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