DeepSeek (深度求索) Reportedly Opens First External Financing Round as State-Owned Funds Say They “Can’t Invest at All”

Deal reported

It has been reported that DeepSeek (深度求索), the Chinese AI unicorn long famed for a “no financing” stance, is in talks for its first external equity raise. The Information reportedly says DeepSeek is seeking a valuation not below $100 billion (roughly ¥683 billion) and plans to raise at least $300 million. DeepSeek and its incubator Huanfang Quant (幻方量化) have not publicly responded. A source at a large state-owned equity institution told China Securities Journal the report “is very likely true,” but added bluntly that they are “currently completely unable to invest,” without giving further detail.

Why it matters

Why does a so-called “no money” company suddenly open the door? Because China’s AI sector is moving from pure technical bravado into hard commercialization. Money will buy data, talent retention and deployment at scale. It will also raise an old question: can DeepSeek preserve technical independence while taking external capital—and potentially strategic investors? Reportedly, venture firms say allocations for projects like this are often fought over, underscoring investor hunger even as some public-sector pools appear frozen out.

Context and background

DeepSeek was incubated in 2023 by Huanfang Quant (幻方量化) and shot to prominence after open-sourcing models such as DeepSeek‑V3 and DeepSeek‑R1; in 2025 the firm was widely regarded as a technical benchmark. Its founder Liang Wenfeng (梁文锋) has previously rebuffed offers from top domestic VCs and tech conglomerates. Geopolitics matters here too: export controls on advanced chips and increased scrutiny on cross‑border technology flows have pushed Chinese AI firms to secure domestic capital and supply chains, and have complicated how state-backed entities can participate in risky private rounds. It has also been reported that Yuanrong Qixing (元戎启行) confirmed former DeepSeek multimodal researcher Ruan Chong (阮翀) joined them as chief scientist, a reminder that talent is circulating even as corporate strategies shift.