In the fast-paced world of AI startups, DeepSeek has taken a unique stance by not seeking venture capital (VC) funding. This decision has raised eyebrows and sparked curiosity among industry experts and enthusiasts alike. Here are three compelling reasons why DeepSeek is choosing to go solo:
1. Maintaining Control and Independence
DeepSeek's founder, Liang Wenfeng, has a clear vision for the company and is determined to maintain control. Unlike many startups that rely on external funding, DeepSeek is primarily funded through profits from Liang's hedge fund, High-Flyer. This approach allows Liang to steer the company without external pressures to rapidly monetise AI, which he believes could compromise the quality of fundamental research.
2. Avoiding Trust and Privacy Concerns
As a Chinese company, DeepSeek operates under strict laws that grant the government broad data access. Accepting VC money, especially from Chinese investors, could exacerbate trust and privacy concerns. The U.S. government has a history of sanctioning Chinese tech companies with close ties to the government, and DeepSeek aims to avoid such scrutiny.
3. Financial Self-Sufficiency
DeepSeek's unique financial model sets it apart from other AI startups. By leveraging High-Flyer's profits, the company has managed to fund its operations without needing external investment. However, this self-sufficiency might be challenged as the company aims to keep up with other AI heavyweights and access more advanced AI chips.
Conclusion
DeepSeek's decision to forgo VC funding is a bold move that highlights the company's commitment to maintaining control, addressing trust concerns, and leveraging its financial resources. As the AI landscape continues to evolve, it will be interesting to see how DeepSeek navigates these challenges and opportunities.