DeepSeek AI Ignites Surge in Chinese Tech Investment as Global Interest Grows

DeepSeek's open-source AI breakthroughs are driving renewed venture capital activity in China, reshaping markets and sparking geopolitical tensions.

DeepSeek's cost-efficient AI models have revitalized Chinese venture capital, reversing a three-year decline and attracting significant domestic and international interest.
AI drug discovery firm Insilico Medicine secured $110 million in funding, with last-minute demand from Chinese investors prompting plans for an additional funding round.
The Chinese government is bolstering tech investment with a new fund expected to mobilize 1 trillion yuan ($137.7 billion) and increased policy support for AI development.
DeepSeek founder Liang Wenfeng has rejected monetization and external investment, citing concerns over control and global adoption challenges tied to government connections.
DeepSeek's rapid adoption in China's retail stock market has transformed investor behavior, while its open-source model raises concerns over data security and geopolitical tensions with the U.S.