DeepSeek and robotics firms lead China’s shift toward high-tech capital investment

The Chinese technology sector is experiencing a significant shift in capital allocation, moving away from scale-driven models toward high-tech industries like generative AI and embodied intelligence.

DeepSeek is nearing the completion of a massive second funding round, with the total amount expected to reach approximately 100 billion yuan (roughly 2.4 trillion yen). Major industrial players, including CATL, Geely, and CITIC, are expected to participate. The company is reportedly preparing for an IPO on the Star Market, potentially as early as late 2024, with an annual revenue run rate already reaching approximately $1 billion. DeepSeek is also planning to integrate Huawei Ascend 950DT chips into its data centers.

In the robotics sector, a valuation gap has emerged between established commercial robot companies and emerging embodied intelligence startups. While companies with proven revenue and high shipment volumes often see lower valuations, newer firms focusing on AI-driven humanoid robots are attracting massive investment. For instance, Unitree recently listed on the Star Market, seeing significant valuation growth, while other firms like CloudWalk face challenges in maintaining profitability as they transition from specialized products, such as quadruped robots, to more complex humanoid models.