DeepSeek pauses funding discussions amid investor concerns

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Chinese AI startup DeepSeek has informed prospective investors that it is pausing discussions about a potential second funding round. The move comes just one month after closing a $7.4 billion raise that valued the company at $52 billion post-money. Founder Liang Wenfeng personally invested approximately $3 billion, representing about 40% of the total raised amount, making him the single largest investor in the round. A second funding round was being discussed with a target pre-money valuation of $71 billion, a 37% jump from the first round. This pause raises questions about the durability of investments in the AI sector.

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