Deepseek reportedly prioritizes AGI research over quick profits despite billions in funding

2026-05-22 · Source: The Decoder · Field: Business & Management — Entrepreneurship & Start-ups, Corporate Strategy & Leadership, Capital Markets & Investment Management · Depth: Fundamental Awareness, quick

Summary

Deepseek, an AI startup, is reportedly close to securing a 70 billion yuan (approximately 13.2 billion Singapore dollars) funding round, which would value the company at around \$45 billion. Founder Liang Wenfeng has informed investors that the company's primary focus is on fundamental AI research and the development of artificial general intelligence (AGI), rather than immediate profitability. Deepseek also intends to continue its commitment to building open-source models. Among the expected investors are China's state-owned National Artificial Intelligence Industry Investment Fund, contributing about 10 billion yuan, alongside Tencent, IDG Capital, and Monolith Capital. This state involvement reflects Beijing's broader strategy to maintain control over its domestic AI sector. Deepseek is also developing "Deepseek Code," a product aimed at competing with successful AI tools like Claude Code and ChatGPT in coding and B2B applications. Its \$45 billion valuation remains significantly lower than OpenAI and Anthropic, which are nearing trillion-dollar valuations.

Key takeaway

For investors evaluating AI startups, Deepseek's strategy highlights a critical tension: long-term AGI research versus immediate profitability. Your due diligence must assess how foundational AI and open-source commitments align with funding and investor expectations. Consider the implications of state-backed investment on strategic autonomy and market access, especially in regulated environments. This approach suggests a longer ROI horizon but potentially greater long-term market disruption.

Key insights

Deepseek prioritizes AGI and open-source development over short-term profits, even with significant state-backed funding.

Principles

• Long-term AGI goals can attract major investment.
• State funds influence domestic AI industry direction.
• Open-source commitment can coexist with commercial products.

In practice

• Develop specialized AI products like Deepseek Code.
• Secure state-backed investment for strategic alignment.
• Balance open-source contributions with commercial goals.

Topics

• Artificial General Intelligence
• AI Startup Funding
• Open-Source AI
• Deepseek Code
• China AI Strategy
• Venture Capital

Best for: Entrepreneur, Investor, Executive, Tech Journalist

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Decoder.