DeepSeek frenzy leaves China’s venture capitalists on the AI sidelines
DeepSeek founder Liang Wenfeng once said that Chinese venture capitalists were hesitant in backing pure research projects

Baidu Venture, an independent AI-focused investment arm initiated by its namesake Chinese internet giant, did not invest in DeepSeek even though the venture company sits just one floor above the start-up’s Beijing office.
DeepSeek, spun off from one of China’s top hedge funds High-Flyer Quant in 2023, did not say it was in need of external funding, according to Baidu Venture’s chief executive and managing partner Gao Xue.
“High-Flyer’s AI large model business has no plans to raise capital, so like other VCs, we haven’t had the good fortune of becoming a DeepSeek investor,” Gao told a local news outlet.
The two firms had established contact and maintained “friendly interactions” since DeepSeek moved into the same building last May, he said.