DeepSeek Said to Tell Backers of Funding Pause After Vira…

DeepSeek, a prominent Chinese AI company, has temporarily suspended its second fundraising round, initially expected to solidify shortly, due to controversy surrounding founder Liang Wenfeng's comments on US-Chinese AI competition that gained significant attention online. This decision follows a successful funding round in June, which raised $7 billion. While DeepSeek may revisit the fundraising process later, the current pause reflects frustration over the media's portrayal of Liang's statements during prior financing discussions.

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By Haze Fan and Pei Li

July 25, 2026 at 10:49 AM EDT

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DeepSeek has told prospective investors in its second fundraising round that it’s suspending the deal for now, people familiar with the matter said, days after comments widely attributed to founder Liang Wenfeng about US-Chinese AI competition went viral.

The Chinese AI pioneer verbally informed some of its would-be backers that they wouldn’t be signing investment agreements in the coming days, as they had expected, people familiar with the matter said. DeepSeek might choose to resume the deal process at a later date, the people said, asking to remain anonymous to talk about private discussions. The suspension stemmed in part from Liang’s frustration over online reports about his comments to investors during his first financing deal, which closed in June and raised $7 billion for the AI lab, the people said.

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DeepSeek Said to Tell Backers of Funding Pause After Viral Posts