DeepSeek, founded by Liang Wenfeng, has historically relied on High-Flyer Quant for funding and resources. However, as the AI lab's ambitions expand, it is now pursuing external investors, indicating a significant shift in its funding strategy.
High-Flyer has been involved in lucrative pre-IPO placements in various tech sectors, including semiconductors and robotics, but has recently experienced volatility that has affected its performance. Notably, High-Flyer's allocations in companies like CXMT and Unitree Robotics have yielded substantial returns, although the latter has seen a decline post-IPO.
Analysts suggest that while High-Flyer's investments align with China's strategic tech goals, the fund's primary focus remains on potential returns. DeepSeek's decision to seek external funding, reportedly aiming to raise at least $7.4 billion, underscores the growing capital requirements of AI development and the competitive landscape for talent retention.
This funding round could value DeepSeek at $74 billion, with notable investors including Tencent and JD.com. The move reflects a broader trend where private investments in strategic sectors are encouraged by Beijing, potentially enhancing the commercial prospects of companies like DeepSeek while also signaling their alignment with national priorities