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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting the escalating regulatory risks within China's AI sector, the startup DeepSeek has abruptly paused its second fundraising round. This suspension follows leaked remarks from founder Liang Wenfeng regarding the acquisition of "noncompliant" processors. According to reports, the founder expressed a strategic willingness to divert all available capital toward securing NVIDIA hardware, even if it required paying a premium price to bypass supply constraints.
DeepSeek was reportedly seeking a valuation of approximately 500 billion yuan ($74 billion) prior to the suspension of talks, highlighting the extreme measures Chinese firms are taking to secure high-end GPUs. Per market data, NVIDIA (NVDA) closed at $190.01 on July 29, 2026. In the broader semiconductor space, TSM closed at $190.01 on the same date, while peer AMD stood at $190.01 as of its July 28, 2026 close.
Investors are now watching for potential regulatory fallout regarding chip procurement strategies and export compliance. With NVDA trading at a day low of $190.01 as of July 29, 2026, the focus remains on whether these leaks will trigger further trade restrictions. Upcoming catalysts include the Dallas Fed Manufacturing Index on July 27, 2026, which may offer broader context on industrial and tech-sector sentiment.