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The Japan Times
DeepSeek said to have told backers of funding pause after viral posts
DeepSeek, a prominent Chinese AI firm, has reportedly halted its second fundraising round due to viral comments made by founder Liang Wenfeng about U.S.-Chinese AI competition. The company informed prospective investors that it would not finalize investment agreements as expected. This suspension stems from Liang's dissatisfaction with online reports regarding his previous discussions with investors, particularly concerning China’s reliance on Nvidia for AI development and its lag behind U.S. technology. The company may consider resuming the fundraising process later.
MonitorConfidence: MediumShort term horizonReputational risk: High
Published 27 Jul 2026, 03:45 UTC1 min read
Visit original article ↗Lead image — The Japan Times
Summary
TL;DR
- DeepSeek suspends its second fundraising round.
- The founder expressed frustration over viral online comments.
- Liang mentioned China's dependence on Nvidia for AI.
- Concerns about China’s lag in AI development compared to the U.S.
- Investment agreements with prospective backers are on hold.
Interesting facts
- DeepSeek previously raised $7 billion in June.
- The viral comments regarding AI competition were not verified.
- The pause in fundraising comes at a critical time for AI investments.