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DeepSeek pauses follow-on fundraising while preparing for possible IPO filing

DeepSeek pauses follow-on fundraising while preparing for possible IPO filing

The Chinese AI startup had been seeking at least 10 billion yuan at about a $71 billion pre-money valuation after a June debut raise of more than 50 billion yuan, but has told some investors the process is on hold.

Fact Check
Reuters (citing Bloomberg) directly confirms DeepSeek told prospective investors it is pausing its second fundraising round, and Crypto Briefing provides corroborating detail on the halted second round following the first raise. The WSJ separately confirms DeepSeek is preparing an IPO with paperwork targeted for filing by the end of this year, matching the 'IPO filing as early as this year' claim. Both components of the claim are supported by credible sources. Note that Reuters flags it could not independently verify the Bloomberg report, so a small residual uncertainty remains.
    Reference: 123
Summary

DeepSeek has paused its second fundraising round while continuing preparations for a possible IPO filing as soon as this year, according to people familiar with the matter. The Chinese AI startup had been seeking at least 10 billion yuan in a follow-on round at a pre-money valuation of at least 480 billion yuan, or roughly $71 billion, after raising more than 50 billion yuan, about $7 billion to $7.4 billion, in its first external financing in June 2026. Bloomberg reported the pause stemmed in part from founder Liang Wenfeng's frustration over online reports about comments attributed to him on DeepSeek's reliance on Nvidia chips and China's AI gap with the US, though the authenticity of those posts was not verified. The company is seeking capital to expand compute power, data center capacity and talent, while maintaining a research-first strategy focused on open-source models and longer-term AI development.

Terms & Concepts
  • IPO: An initial public offering, when a company seeks to list its shares on public markets.
  • pre-money valuation: A company's estimated value before new investment is added in a fundraising round.
  • computing capacity: The processing infrastructure, including chips and data center resources, needed to train and run AI systems.