DeepSeek is making waves in the AI world—not just for its cutting‐edge technology but also for its unorthodox approach to financing. Founded by Liang Wenfeng, DeepSeek is quickly emerging as one of the hottest AI startups globally. Despite attracting intense interest in Silicon Valley and beyond, Liang remains in no hurry to accept outside investment, a strategy that underscores his commitment to maintaining full control over his company.
According to a recent Wall Street Journal report, DeepSeek’s founder is steering clear of traditional venture capital routes. This comes in spite of the growing list of AI startups which have been attracting huge external investments in 2025. While many startups in the AI sector chase mega-rounds and public endorsements from prominent investors, Liang Wenfeng prefers to fund his venture internally. DeepSeek’s ownership structure is striking: an analysis of Chinese corporate records reveals that Liang controls 84% of the company. The remaining stake is held by affiliates of his hedge fund, High-Flyer. This unique arrangement means that—unlike most startups that must adapt to external influence—DeepSeek’s strategic direction is squarely in Liang’s hands.
For Liang, the debate over external capital is not about money at all. “Money has never been the problem for us; it’s the bans on advanced chip shipments that pose the real challenge,” he explained in a 2023 interview. In other words, DeepSeek’s approach to funding is more about safeguarding its independence than about raising cash. By relying on profits from High-Flyer, the company sidesteps the pressure to monetize quickly—a pressure that many venture capitalists impose on emerging tech firms.
Rejecting the VC Playbook for Long-Term Innovation
Liang’s decision to hold back on external investments stems from a clear vision: he believes that rapid monetization should never trump deep, fundamental research. When he tried to raise capital in the past, Liang was disheartened by investors’ relentless focus on short-term profits. Instead of chasing the latest funding round, he has chosen a path that prioritizes groundbreaking innovation over immediate financial returns.
This strategy has paid off in more ways than one. By avoiding the typical VC route, DeepSeek has managed to keep a tight rein on its strategic decisions. For Liang, external funding is more than just capital—it’s a potential risk to the company’s creative control and long-term goals. This stance has not only set DeepSeek apart from its competitors but has also fueled debates in the market, with baseless stock rallies sometimes emerging from rumors about the startup’s investor list.
Navigating Global Regulations and Data Concerns
Operating as a Chinese company in today’s geopolitical climate is never without challenges. DeepSeek faces strict regulations that grant the Chinese government broad access to data. These legal conditions have led to bans in several countries and among some private firms concerned about data privacy and trust. Accepting external funding—especially from investors with similar ties to the Chinese state—could intensify these concerns.
The U.S. government, for instance, has a history of sanctioning Chinese tech companies that are perceived as too close to the state, as seen with giants like Huawei and DJI. Even though several Chinese state entities have shown interest in investing in DeepSeek, Liang has so far resisted any proposals that might compromise the company’s autonomy. For him, preserving independence in the realm of DeepSeek funding is paramount, even if it means missing out on lucrative external investments.
Signs of a Potential Strategic Shift
Despite his current stance, there are emerging signals that DeepSeek’s funding strategy might evolve. Earlier this month, the company announced a profit margin for the first time—a move that hints at a future shift toward monetization. This development could attract the kind of investment that Liang has long dismissed, as improved profitability might ease concerns about immediate returns.
Furthermore, DeepSeek’s need for more sophisticated AI chips continues to grow. These chips, essential for the company’s next-generation models, are not only expensive but also subject to U.S. export controls, adding another layer of complexity to the funding equation. As global competition heats up, ensuring a steady supply of advanced hardware may force DeepSeek to reconsider its self-funding model.
Compounding these challenges are the recent underperformances of flagship funds at High-Flyer, coupled with increasing government crackdowns on quant funds since 2024. Rumors are already circulating that major players such as Tencent and Alibaba are eyeing an investment, although no concrete deals have materialized. If these trends persist, the pressure to adapt DeepSeek’s funding strategy could intensify.
The Future of DeepSeek Funding
For now, DeepSeek remains a rare example of a startup that can thrive without the typical infusion of external capital. Liang Wenfeng’s decision to rely on internal profits rather than chasing venture capital reflects his deep commitment to innovation and control. By keeping DeepSeek funding in-house, he avoids the pitfalls of short-term pressure and maintains the freedom to pursue long-term research projects without compromise.
However, as the AI landscape becomes increasingly competitive and regulatory challenges mount, even a company with as much internal support as DeepSeek might eventually need to revisit its funding model. Whether it will remain an independent powerhouse or gradually welcome outside capital remains to be seen. What is clear, though, is that DeepSeek’s current strategy sets a bold example in the tech world—one where preserving control and nurturing innovation take precedence over conventional growth tactics.
In the coming months and years, industry watchers will be keenly observing how DeepSeek balances its ambitious research goals with the inevitable demands of scaling up. For now, Liang’s vision of self-reliance and focused innovation remains at the heart of DeepSeek’s journey—one that could redefine the norms of startup investment in the AI sector.
