China’s State-Funded Investments Fuel DeepSeek and AI Growth

One of the world’s most contentious AI companies, DeepSeek, recently secured its first outside investment from the Chinese government. Founder Liang Wenfeng, a hedge fund billionaire, had previously rejected external funding but changed course in mid-April when reports surfaced about a valuation increase to $45-50 billion, with a target raise of up to $7.35 billion, led by the China Integrated Circuit Industry Investment Fund. This move reflects a larger trend in China’s AI market, with government-linked investors increasing their participation significantly over the past decade. The shift in government policy towards supporting AI and semiconductor industries in China has been…