DeepSeek, the Chinese AI lab founded by Liang Wenfeng, is seeking at least another $7.4 billion from outside investors as its capital and computing needs outgrow its long-standing backer, High-Flyer Quant, the hedge fund Liang co-founded. The reported second round would value DeepSeek at $74 billion and is expected to close by the end of August. High-Flyer’s affiliates have meanwhile secured pre-IPO placements (shares bought before public trading) in companies including memory-chip maker CXMT and robot maker Unitree Robotics. Their combined CXMT allocation was worth $26 million, or 175 million yuan, while their Unitree allocation totaled $5.8 million. DeepSeek itself received 2.31% of Unitree’s offering as one of nine strategic investors and accepted a 36-month lock-up. The investments reflect both potential returns and alignment with Beijing’s strategic technology priorities, but volatility has exposed the risks: Unitree surged 460% on its Shanghai debut before retreating about 27%, while eight of High-Flyer’s nine products lost money during a July global AI-chip rout. Analysts say DeepSeek’s external fundraising reflects the growing cost of developing advanced AI and pressure to retain senior engineers, while Liang’s investments appear to converge with Beijing’s priorities rather than being state-directed.