DeepSeek Said to Tell Backers of Funding Pause After Viral Posts

DeepSeek has paused its second fundraising round, telling prospective investors the deal is suspended for now, according to people familiar with the matter. The move comes days after comments widely attributed to founder Liang Wenfeng about US-Chinese AI competition went viral online.

The Chinese AI startup gained global attention in recent weeks after releasing models that challenged assumptions about the cost and efficiency of developing competitive artificial intelligence. The viral posts referencing Liang's remarks on the geopolitical AI race preceded the fundraising suspension by only days, though no direct causal link has been confirmed in the report.

The timing raises questions about whether regulatory scrutiny, political sensitivities surrounding cross-border AI development, or internal strategic shifts prompted the pause. DeepSeek had been in discussions with investors for the second round before halting the process.

For private AI companies, fundraising pauses can signal either heightened regulatory risk or a recalibration of valuation expectations after public attention. The suspension leaves investors in limbo and may influence sentiment around other Chinese tech firms navigating US-China tensions.