DeepSeek’s reported funding pause leaves its second-round terms unresolved

• A report citing people familiar with the matter says DeepSeek told some prospective investors that second-round agreements would not be signed in the coming days.
• A later restart remains possible; neither a cancellation nor the reason for the pause has been confirmed by DeepSeek.
• Reports describe different valuation benchmarks and a minimum 10 billion yuan target, but no completed second-round deal.

DeepSeek has reportedly put a proposed second fundraising round on hold just before prospective investors expected documents to be signed. The narrowest reading of the development is also the most reliable: Reuters said that Bloomberg News, citing people familiar with the matter, reported that the Chinese AI startup had verbally told some potential backers not to expect agreements in the coming days.

Reuters said it could not independently verify that account and that DeepSeek could not immediately be reached for comment. The reporting says the process might resume later. It does not establish that investors have withdrawn, that the fundraise has been cancelled, or that a final valuation was agreed.

A financing pause, not a disclosed cancellation

DeepSeek is the Hangzhou-based Chinese AI startup founded in 2023 by its founder, Liang Wenfeng. Liang previously founded High-Flyer Quantitative Investment Management, a hedge fund that built computerized stock-trading models and used machine learning to refine them, an Associated Press profile reported. That background matters because the founder at the center of the reported decision also came to AI through a business with quantitative-model and computing experience.

The profile said High-Flyer reportedly managed $8 billion in assets in early 2025 and had accumulated 10,000 Nvidia A100 graphics processors by 2022. Those are historical, reported indicators of the group’s resources, not a disclosure of DeepSeek’s current cash position or an explanation for the alleged pause.

DeepSeek became a focal point in China’s AI industry after a model released early last year was presented as showing that a capable platform could be built with less computing resource than leading rivals. The account of the financing says DeepSeek is seeking more money to expand computing capacity and that its executives had told prospective investors the company would prioritize breakthrough research over near-term commercial interests. Those are reported descriptions of the company’s plans, not evidence that capital is unavailable or that research and fundraising are in conflict.