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DeepSeek, Alibaba Investment Talks Collapse

·2026.05.09 19:59

Key point

DeepSeek broke off investment negotiations with Alibaba, prioritizing independence.

Details

In DeepSeek's large-scale funding round that began in April, terms could not be agreed upon with Alibaba. DeepSeek reportedly maintained its direction of remaining an independent model company rather than being tied to a specific big tech ecosystem.

  • Alibaba has been strengthening AI ecosystem integration by bundling Tongyi Lab, Qwen, and others.
  • DeepSeek valued flexibility for outside investment over Alibaba-style integration, and also sought to reduce restrictive clauses in the contract.
  • According to Bloomberg, Tencent proposed acquiring up to a 20% stake in this round, but DeepSeek is reluctant to hand over a large stake.

As China's big tech companies vie to secure stakes in DeepSeek, DeepSeek has made clear its intent not to subordinate its models and business structure to any specific platform.

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