Beijing's endorsement of DeepSeek and Liang has also helped open doors and improved their access to marquee listings
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Having star backers like DeepSeek or Liang's quant funds could be a powerful signal, "bringing attention and legitimacy to the IPO," Chan said, giving its valuations a potential extra lift.
Key facts
The AI lab is reportedly in talks with investors to raise at least another $7.4 billion in a second funding round that would value it at $74 billion
DeepSeek has become "too large and capital-intensive to remain simply a side project of the quant fund," said Wang, noting that DeepSeek's first funding round of 50 billion yuan ($7.4 billion)
CXMT was by far the two funds' largest allocation, with a combined $26 million, or 175 million yuan, worth of pre-IPO shares, according to data compiled by Shenzhen PaiPaiWang Investment &
Unitree soared 460% the day of its IPO in Shanghai last week, but has retreated some 27% since then, according to LSEG data
Summary
DeepSeek, the lab that put Chinese artificial intelligence on the map last January, has long been financed by High-Flyer Quant, its founder Liang Wenfeng's hedge fund. The fund used AI and deep learning to trade stocks for years before supplying DeepSeek with early funding and computing power. Now, DeepSeek has turned to outside investors to fund its growing ambitions, while High-Flyer has secured allocations across some of China's hottest hard-tech IPOs, from chips to robotics. Pre-IPO placements, shares secured before trading begins, can deliver outsized paper gains for hedge funds, particularly when sought-after stocks rally on their debuts. But recent volatility in AI and chip stocks exposed funds like High-Flyer to sharp drawdowns.