DeepSeek's financing negotiations with Alibaba have broken down, with ecological binding and control rights differences becoming the focus

DeepSeek's financing negotiations with Alibaba have broken down. DeepSeek launched a massive financing round, attracting major companies like Tencent and Alibaba, but the two sides ultimately failed to reach an agreement. The core conflict lies in Alibaba's desire to strengthen its AI ecosystem through investment, while DeepSeek, as an independent model company, insists on minimizing binding terms and maintaining technological independence, unwilling to accept excessive ecosystem ties.

DeepSeek founder Liang Wenfeng has long rejected external equity financing. Although this time he has opened the door for the first time, his bottom line remains unchanged, prioritizing offers with "the least additional conditions." DeepSeek's current financing round is valued at approximately 300 billion RMB (about 45 billion USD), with the fundraising focus on supplementing computing power and R&D funds, while also providing a market valuation anchor for employees to retain talent. Tencent had proposed to subscribe for up to 20% of the shares, but DeepSeek declined due to its unwillingness to relinquish a large proportion of control. Ultimately, the China National Integrated Circuit Industry Investment Fund and others may lead the investment, with relatively relaxed terms that align more closely with DeepSeek's technological idealism.