DeepSeek Halts Second Funding Round Amid US-China AI Competition Concerns

China's leading AI company DeepSeek has suspended its second fundraising round amid concerns over the US-China AI competition. The company, which developed a groundbreaking AI model last year, is halting negotiations with potential investors after CEO Liang Wenfeng's comments about the US's approach to China went viral. DeepSeek, which raised $7 billion in its initial funding round, was targeting at least 10 billion yuan (around $1.3 billion) in additional funds. The company has also begun preparations for an IPO, potentially as early as this year. Liang Wenfeng's net worth has more than doubled to $36 billion, making him the world's richest AI founder.

China's push to compete with the US in AI is not only reshaping the global tech landscape but also affecting DeepSeek's investor relations. The company is now navigating the risk of international investors pulling back amid a potential hardening of the US's stance toward China.