Deepseek does not yet take money VC. Here are 3 reasons why.
The founder of Deepseek, Liang Wenfeng, is not in a hurry to obtain investments from Outsiders, the WSJ reported Monday.
Deepseek is one of the most popular AI startups in the world at the moment after the Chinese AI company stormed the Silicon Valley with His latest model Earlier this year.
Unlike the counterparts of Deepseek AI model suppliers, who regularly announce mega-rounds filled with eminent investors, Liang has not announced any fundraising, despite a lot of interest from VC. Rumors about his alleged investors have even Fed rallies (baseless) In some Chinese stocks.
The founder of Deepseek does not want to lose control
An analysis of the Chinese corporate files by Techcrunch shows that Deepseek belongs to 84% by Liang himself. The rest of the startup belongs to individuals affiliated with the Liang, High-Flyer.
This means that unlike most startups, which require outdoor capital and are therefore used for at least an external influence, Deepseek is essentially an individual spectacle. And Liang does not have the highest esteem for the opinions of VCs.
When Liang tried to raise capital in the past, he was put off by VCS on the rapid monetization of AI as opposed to basic research, he said in An interview in 2023 with Chinese media.
So, a great reason why Liang did not say yes to investors who strike his door is that he does not want to share the control of his business, reported the WSJ.
Deepseek does not need external funding – again
Most startups have needed investor capital from the start. But Deepseek is a unique beast. Liang was able to finance Deepseek thanks to the benefits of High Flyer, reducing his external investment need.
“Money has never been the problem for us; Prohibitions on advanced flea expeditions are the problem ”, Liang said in 2023.
Investors could deepen the problems of trust and confidentiality
As a Chinese business, Deepseek operates under strict Chinese laws that grant its great access to data.
Concerns about this have caused deep prohibitions An increasing number of governments And even Some private companies.
These prohibitions could worsen if Deepseek accepts the financing of a Chinese investor, who is faced with similar problems.
The American government has history of sanctioning Chinese technological companies which, they believe, are close to the Chinese government, such as the telecommunications giant Huawei and the popular Dji Dronemaker.
This did not prevent certain Chinese state entities from approaching Deepseek for investment, information reportedAlthough there is no indication that Deepseek has accepted.
Why all this could change
However, this does not mean that Deepseek will never increase external capital.
Earlier this month, Deepseek announced a profit margin (largely theoretical) For the first time, signaling a change towards monetization – something of value VCS, but that Liang previously rejected.
To follow the other heavyweights of the AI, Deepseek will probably need to access Plus and Better – the biggest bottlenecks in its development, its founder Liang said in 2023. These chips are expensive and highly limited in China due to American export controls.
Deepseek’s ability to self -funded can also be discolored. While High-Flyer has succeeded in the past, some of its flagship funds have underperformed since 2022, the WSJ reported.
It also does not help that the Chinese government was crampon on quantum funds like the high-vole since 2024.
While few concrete names circulate, Deepseek has already aroused the interest of Tencent and Alibaba, according to several reports.
Deepseek did not immediately respond to a request for comments.
