DeepSeek isn’t taking VC money yet — here are 3 reasons why

2 min read AI startup DeepSeek, led by Liang Wenfeng, is resisting outside investment, relying instead on profits from his hedge fund, High-Flyer. Liang, who owns 84% of the company, wants to maintain control and avoid regulatory risks tied to Chinese investors. However, chip shortages and financial pressures may push DeepSeek toward funding, with Alibaba and Tencent already showing interest. March 11, 2025 10:50 DeepSeek isn’t taking VC money yet — here are 3 reasons why

Key Reasons

Founder Control – Liang owns 84% of DeepSeek and prefers to avoid investor influence.
Self-Funding Model – DeepSeek has relied on High-Flyer hedge fund profits, not external capital.
Regulatory Risks – Accepting Chinese investors could intensify global trust issues and potential sanctions.

Why It Matters

🚀 A Rare AI Startup – While competitors rush for funding, DeepSeek is growing without outside cash.
🔍 Changing Market Forces – U.S. chip restrictions and hedge fund struggles may push DeepSeek toward investors.
💡 Future Shift? – Interest from Alibaba and Tencent suggests DeepSeek might open up to funding soon.

With AI development requiring costly chips and compute power, will DeepSeek hold its ground or finally take the VC plunge?

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