The sudden rise of Chinese artificial intelligence startup DeepSeek in early 2025 has captured global attention. Founded in July 2023 by Liang Wenfeng, this privately held Chinese company, backed by capital from its affiliated hedge fund, has developed an open-source large language model. The model employs a technique known as “inference-time computation,” which activates only the most relevant parts of the model for each query, thereby saving time and cost.
Reportedly, DeepSeek trained its latest R1 model for just $294,000, a stark contrast to the training costs of AI models in the United States. For reference, OpenAI CEO Sam Altman has stated that his company has invested over $100 million in training its foundational AI models. U.S. tech giants Alphabet (GOOG) (GOOGL), through its Google subsidiary, and Meta Platforms (META) are pouring tens of billions of dollars into AI model training and infrastructure development. If DeepSeek can indeed build AI models with such a low investment—requiring significantly fewer specialized semiconductors from companies like Nvidia (NVDA)—it could create massive shockwaves across the AI industry in the coming years.
As of mid-2026, DeepSeek is not a publicly traded company. The company is wholly owned by High-Flyer, a Chinese hedge fund founded and managed by its creator, Liang Wenfeng.
As of mid-2026, DeepSeek has not put an IPO on its agenda. This AI startup is unlikely to go public anytime soon. As an extremely early-stage startup, it may be quite some time before it reaches an initial public offering. In early 2026, the company completed a funding round from investors backed by the Chinese government, achieving a valuation of $50 billion, which provides capital for its continued R&D efforts and expansion of computing infrastructure.
Since DeepSeek has not yet completed an IPO, investors cannot purchase its stock through brokerage accounts. As of mid-2026, it is also not possible to buy pre-IPO shares of DeepSeek, as the company is held by High-Flyer and other government-backed investors.
While direct investment in DeepSeek is not currently possible, investors can participate in the AI trends it has popularized through other leading AI companies. Three DeepSeek alternatives to consider include:
Nvidia (NVDA): Nvidia is a leader in developing advanced chips for training AI models and applications. DeepSeek uses Nvidia chips, which its founder Liang Wenfeng reportedly stockpiled before the U.S. banned exports of AI chips to China. The company is said to have used Nvidia’s less expensive H800 chips, rather than the costlier A100, to train its latest model. DeepSeek’s technological breakthrough could accelerate the adoption of AI, which remains a positive development for Nvidia.
Microsoft (MSFT): Microsoft is a leader in the AI field and an early investor in OpenAI. The company has integrated AI into various aspects of its business to help users improve productivity. Although DeepSeek is a potential competitor to ChatGPT, Microsoft could still benefit from its cost breakthrough—cheaper AI implementation would enable the company to gain more in the future.
Meta Platforms (META): Meta Platforms is investing heavily in AI, announcing plans to spend $125 billion to $145 billion in 2026 on projects such as expanding its AI infrastructure. If DeepSeek’s low-cost approach proves to be a genuine breakthrough, Meta would benefit from reduced development costs.
DeepSeek’s emergence has shaken the AI industry by demonstrating a more cost-effective method for training AI models. With direct financial backing from the government, the company is rapidly becoming a leader in China’s AI sector. As the AI race intensifies, DeepSeek has established itself as a key player to watch in the AI industry in the coming years.
