DeepSeek founder Liang Wenfeng is best known for the AI model that gave China its "ChatGPT moment." However, the AI lab is now seeking fresh funding as High-Flyer Quant, the hedge fund co-founded by Liang, can no longer provide the necessary capital.
This year, the quant fund has invested in China's tech IPOs, but recent volatility in the AI and chip markets has revealed High-Flyer's financial instability.
Beijing's policy to list strategically important tech firms has created lucrative pre-IPO investment opportunities. High-Flyer Quant and DeepSeek's investments are primarily focused on chips and robotics.
DeepSeek's decision to open up to external funding for the first time signals the growing capital demands of AI. The first funding round raised 50 billion yuan ($7.4 billion), with plans to raise another 50 billion yuan in the next round.
