Deepseek still doesn’t take money from VC – here are 3 reasons why

Deepseek Liang Venfen’s founder is in no hurry to get investments from outsiders, WSJ reported Monday.

Deepseek is one of the hottest startup AIs in the world right now after Chinese AI company took the Silicon Valley from a storm with His last model Earlier this year.

Unlike the colleagues from the Depepeek AI supplier, who regularly announce mega-rounds filled with prominent investors, Leang has not announced any funds for raising funds, despite many interest rates on VC. Rumors of his alleged investors have even nourished (unfounded) rallies In some Chinese stocks.

Deepseek Founder does not want to lose control

The analysis of Chinese corporate records made by TechCrunch shows that Deepseek is 84% ​​owned by Liang. The rest of the launch is owned by persons related to the Liang Hedge Fund, High-Flyer.

This means that, unlike most start -ups that require external capital and thus are used at least for some external influence, Deepseek is a major show for one person. And Liang has no biggest attitude towards VCS’s opinion.

When Liang tried to collect capital in the past, he was delayed by the focus of VCS on quickly providing AI revenue, unlike fundamental research, he said in Interview with 2023 with Chinese mediaS

So one big reason why Liang did not say yes to investors who are stuck on his door is that he does not want to share control over his company, WSJ reported.

Deepseek does not require external funding – though

Most startups need investor capital from the beginning. But Deepseek is a unique beast. Liang was able to fund Deepseek through High-Flyer’s profits by reducing his need for external investment.

“Money has never been the problem for us; The problem is prohibitions of delivering advanced chips, “Liang said in 2023.

Investors may deepen confidential confidence and fears

As a Chinese company, Deepseek operates under strict Chinese laws that provide their government widely accessing data.

The concerns about this caused DEPEPEK prohibitions by growing number of governments and even some private companiesS

These bans could be worsened if Deepseek accepts funding from a Chinese investor who faces such problems.

The US government has a history of sanctioning Chinese technology companies that are said to be close to the Chinese government, such as the telecommunications giant Huawei and the popular DJI drone manufacturer.

This has not stopped some Chinese state formations to approach Deepseek for investment, information reportedDespite the, there are no indications that Deepseek has accepted.

Why all this can change

However, this does not mean that Deepseek will never collect external capital.

Earlier this month, Deepseek ads (largely theoretical) profit margin For the first time, signaling the transition to revenue – something that VCS value, but Liang rejected before.

In order to keep up with other heavy weights on AI, Depepeek is also likely to need access to more and better AI chips -the biggest difficulty in development, said Leang in 2023. These chips are expensive and severely restricted in China because of China due to US export controlsS

Deepseek’s ability to self -finance can also fade. While High-Flyer has done well in the past, some of its leading funds are lower than 2022, WSJ reports.

Moreover, it does not help that the Chinese government has been cracking down of quantitative means such as High-Flyer from 2024

While few specific names are distributed, Depepeek has already attracted interest from Tencent and Alibaba, according to numerous news reports.

Deepseek did not immediately reply to a request for comment.