DeepSeek’s Self-Funded Path: What It Means for the Startup Ecosystem

DeepSeek, one of the hottest AI startups in the world, is bucking the trend—rejecting outside investment despite heavy VC interest. Unlike its AI peers, founder Liang Wenfeng is determined to maintain control, funding DeepSeek through his hedge fund, High-Flyer, rather than relying on investors eager for rapid monetization.

What does this mean for startups?

DeepSeek’s model raises key questions about funding, control, and long-term vision. While VC funding is the traditional route for scaling, DeepSeek proves that self-sufficiency is possible—at least for now. However, as competition in AI heats up and access to high-powered chips becomes critical, even DeepSeek may need external funding in the future.

A Shift in Startup Strategies

At Expand North Star’s 10th edition, we continue to see diverse funding approaches emerge. Some founders, like Liang, prioritize independence and long-term research, while others seek strategic investment for rapid scaling. With AI innovation at the forefront, the funding landscape is evolving—offering more choices than ever for ambitious startups.

What’s next?

DeepSeek’s approach might not work for everyone, but it highlights an important conversation in the startup world: How do founders balance control, capital, and growth? At Expand North Star, we bring together VCs, founders, and tech leaders to explore these questions and define the future of startup funding.

Building the next AI powerhouse? Let’s connect at Expand North Star 2025 to explore funding, partnerships, and the future of AI.

*Source: DeepSeek isn’t taking VC money yet — here are 3 reasons why | TechCrunch