Topics
late
AI
Amazon
Image Credits:VCG/VCG / Getty Images
Apps
Biotech & Health
clime
Image Credits:VCG/VCG / Getty Images
Cloud Computing
commercialism
Crypto
endeavour
EVs
Fintech
fundraise
Gadgets
punt
Government & Policy
Hardware
Layoffs
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
security system
Social
Space
Startups
TikTok
deportation
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
video
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
DeepSeek ’s founder Liang Wenfeng is in no hurriedness to get investing from outsider , the WSJreportedMonday .
DeepSeek is one of the hottest AI startup in the world right now after the Chinese AI companytook Silicon Valley by stormwithits late modelearlier this year .
Unlike DeepSeek ’s AI model provider counterparts , who on a regular basis announce mega - cycle sate with prominent investors , Liang has n’t announced any fundraises , despite lots of VC interest . rumour about its suppose investor have evenfueled ( baseless ) ralliesin some Chinese stock .
DeepSeek’s founder doesn’t want to lose control
An analysis of Taiwanese corporate criminal record done by TechCrunch shows that DeepSeek is 84 % owned by Liang . The relaxation of the startup is owned by individual affiliate with Liang ’s hedge fund , High - Flyer .
That mean that unlike most startups , which ask outside capital and are thus used to at least some external influence , DeepSeek is basically a one - human beings show . And Liang does n’t have the mellow regard for VCs ’ opinion .
When Liang was trying to resurrect capital in the past , he was put off by VCs ’ focussing on rapidly monetizing AI as fight to fundamental enquiry , he said ina 2023 interview with Chinese media .
So one big reason why Liang has n’t tell yes to the investors thump down his door is that he does n’t want to partake ascendence of his companionship , the WSJ reported .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
DeepSeek hasn’t required outside funding — yet
Most inauguration demand capital from investor from the start . But DeepSeek is a unparalleled beast . Liang has been capable to fund DeepSeek through High - Flyer ’s net income , reducing his demand for external investment .
“ Money has never been the problem for us ; bans on shipment of advanced chips are the problem , ” Liang said in 2023 .
Investors could deepen trust and privacy concerns
As a Formosan company , DeepSeek operate under strict Chinese laws that grant its government panoptic data point access .
worry over this have prompted DeepSeek bans froma rising figure of governmentsand evensome private companies .
Those proscription could get even worse if DeepSeek accepts financing from a Chinese investor , who present similar government issue .
The U.S. government has a history of sanction Chinese tech companies it says are closemouthed to the Chinese political science , like telecom giant Huawei and democratic lagger maker DJI .
That has n’t turn back some Chinese land entities from set about DeepSeek for investment , The Informationreported , although there ’s no denotation DeepSeek has accept any .
Why this could all change
This does n’t intend DeepSeek will never conjure outside capital , though .
sooner this month , DeepSeekannounced a ( largely theoretical ) profit marginfor the first metre , betoken a shift toward monetisation — something VCs time value but that Liang antecedently dismissed .
To keep up with other AI heavyweight , DeepSeek will also likely need approach to more and good AI chips — the self-aggrandizing constriction on its growth , Liang say in 2023 . Those chip are expensive and heavily restricted in China due toU.S. exportation ascendance .
DeepSeek ’s power to be ego - funding may also be fading . While High - Flyer has done well in the past , some of its flagship funds have underperformed since 2022 , the WSJ reported .
It also does n’t aid that the Taiwanese government has beencracking downon quant funds like High - Flyer since 2024 .
While few concrete name calling are circulating , DeepSeek has already draw interest from Tencent and Alibaba , according to multiple newsworthiness theme .
DeepSeek did n’t immediately respond to a request for input .
