DeepSeek (幻方量化) reportedly eyes $3B raise at >$10B valuation as founder bets personal billions

Funding push and market context

It has been reported that DeepSeek — the AI research and quant unit tied to Huanfang Quantitative (幻方量化) — is seeking its first external financing round, aiming to raise at least $300 million and targeting a valuation north of $10 billion, according to The Information, which cited multiple unnamed sources. If true, a market-priced equity round would give an outside reference to a unit that has largely been financed “in-house” to date and could change how the group rewards and retains talent.

The Information’s report follows earlier denials and rounds of speculation. DeepSeek previously dismissed rumors in early 2025 when Alibaba and other tech groups were said to have expressed interest; founder Liang Wenfeng (梁文锋) publicly warned that outside investors might meddle in research decisions. Yet the market for AI funding revived in late‑2025 and early‑2026, and the company’s math may have shifted: industry estimates suggest that, on a “1% management fee + 20% performance fee” model, Huanfang’s fees and carry could reach roughly RMB 5 billion (~$700 million) in 2025 alone.

Talent, valuation and strategic value

Why pursue external capital now? Reportedly several core researchers—including Guo Dayan, Wang Bingxuan and Wei Haoran—have left for higher pay elsewhere, and a priced round could both reward retained staff and create an “anchor” valuation to stop further attrition. There is another argument beyond cash: high‑quality investors can bring compute partnerships, client channels and policy clout — non‑financial assets that an internally funded unit may lack.

It has also been reported that Liang personally injected around RMB 20 billion into an earlier round, a move framed as both a vote of confidence and a signal to outside investors. These figures remain unverified and come via media sources rather than company filings. With U.S.–China tech tensions, export controls on semiconductors and heightened scrutiny over cross‑border AI ties, any large cross‑border financing for AI research will attract attention beyond the usual market lenses. Can outside money buy stability without compromising research independence? That question now sits at the center of this rumored deal.