DeepSeek tells prospective investors of funding pause, Bloomberg News reports

July 25 (Reuters) - Chinese ‌AI startup ​DeepSeek ​has told prospective investors in its second fundraising round that it ‌is suspending the deal for now, Bloomberg ⁠News reported on Saturday, citing people familiar with ‌the matter.

Here are some ‌details:

• DeepSeek verbally informed some of its potential backers that they would not ​be signing investment agreements in the coming days, the report said.

• The company ⁠might resume the deal process at a later date, Bloomberg ​News added.

• Reuters could not immediately verify the report. DeepSeek could not ​immediately be reached for ‌comment outside regular business hours.

• Hangzhou-based DeepSeek planned to launch a ⁠fresh fundraise at a valuation of about 500 billion yuan ($74 billion), after a successful maiden ⁠round which raised about $7.4 billion.

• The pause was reportedly ​driven in part by DeepSeek founder Liang Wenfeng's frustration over online reports on comments he made ‌to investors during the startup's first fundraising round.

• Reuters reported last ‌week that DeepSeek had also started early ⁠deliberations on a ‌potential IPO on ​Shanghai's Nasdaq-style STAR Market.

(Reporting by Ananya Palyekar in Bengaluru, Editing by Louise ‌Heavens)

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