DeepSeek seeks capital as High-Flyer bets on China tech IPOs

DeepSeek is seeking outside capital to finance its artificial intelligence development, increasing pressure on its backer High‑Flyer Quant. High‑Flyer affiliates took pre‑IPO allocations in memory‑chip maker CXMT and robotics firm Unitree Robotics.

High‑Flyer Quant, founded by Liang Wenfeng, originally provided DeepSeek with capital and computing resources after applying machine‑learning and deep‑learning techniques to financial markets. As DeepSeek’s computing and research needs grew, the AI lab began seeking funds from external investors.

Two High‑Flyer affiliates, Zhejiang High‑Flyer Asset Management and Ningbo High‑Flyer Quantitative Investment Management, secured allocations in several Chinese technology companies ahead of their listings. Their placements included CXMT, Unitree and companies involved in chip packaging, electronic components and renewable energy.

The two affiliates together received about RMB175 million (roughly $26 million) of CXMT shares before the company’s Shanghai listing. CXMT’s shares rose more than fivefold on their July debut and have continued to gain. The affiliates also obtained about $5.8 million of Unitree shares before its listing.

DeepSeek separately invested in Unitree as a strategic backer, taking a 2.31% stake in the offering and agreeing to a 36‑month lock‑up. Unitree’s stock initially jumped about 460% on its Shanghai debut before retreating roughly 27% from the peak.

Market moves affected High‑Flyer’s quantitative strategies. Eight of the firm’s nine quant products posted losses in July during a global selloff in AI‑related stocks; those funds recovered some losses in August.

DeepSeek has sought external funding as its computing and research costs have increased. High‑Flyer and its affiliates have been taking pre‑IPO allocations in several Chinese technology listings.