After upgrading its DeepSeek-V4 model, Hangzhou-based AI firm DeepSeek revealed a major ownership shift. Filings on the Chinese registry platform Qichacha show registered capital rising 50% from CNY10 million (approx. US$1.4 million) to CNY15 million.
Founder Liang Wenfeng sharply increased his subscribed capital from CNY100,000 to CNY5.1 million, raising his stake from 1% to 34%. The move signals tighter founder control ahead of a potential funding round, with AI and LLM competition accelerating globally.
DeepSeek is reportedly preparing a funding round at a valuation of up to US$20 billion, with Tencent and Alibaba weighing participation. The restructuring marks a shift from its earlier stance of avoiding venture capital, having relied on backing from affiliated quant hedge fund High-Flyer Quant.
The reshuffle clarifies governance ahead of external investment. Market observers view it as a standard pre-emptive move to secure founder control before institutional capital enters.
Under China's Company Law, a stake above one-third (33.34%) can block special resolutions by preventing the required two-thirds approval. A 34% holding is widely seen as an effective veto threshold.
This gives Liang veto power over major decisions, including charter changes, capital adjustments, mergers, and dissolution.
Registered capital increases in China often involve reserve conversions or new share issuance. With Tencent and Alibaba reportedly preparing to invest, the move likely precedes DeepSeek's Series A filing.
DeepSeek's V4 model advancements place it among a handful of Chinese AI firms competing with OpenAI. The company expects surging demand for HPC chips, including Huawei's Ascend series, in the second half of 2026, driving higher capital needs.
Article translated by Levi Li and edited by Jack Wu
