DeepSeek Retains 97% of Engineers Amid AI Talent War

DeepSeek has retained over 97% of its core engineering team despite an intensifying AI talent war in China, according to data buried in the company's latest technical report. The revelation comes as the startup reportedly begins its first-ever fundraising round — a move many observers link directly to founder Liang Wenfeng's strategy to lock in top talent with a concrete company valuation.

The Numbers Behind the Headlines

DeepSeek's V4 model, released in late April, included an extensive acknowledgment section listing contributors. That list tells a striking story: out of approximately 270 researchers and engineers on the team, only 10 departed during the development period.

That translates to a turnover rate below 4% — remarkably low for an industry where poaching has become routine. For context, annual tech industry turnover in major markets typically ranges from 13% to 20%.

'We are indeed in contact regarding DeepSeek fundraising,' a source at a financial advisory firm confirmed to Chinese outlet PEdaily (投资界). The fundraising buzz has been building over the past 2 weeks.

High-Profile Exits Grabbed Headlines

The 97% retention figure stands in sharp contrast to the narrative that dominated tech media for months. Several notable departures made waves across the industry:

• Luo Fuli — departed to Xiaomi
• Wang Bingxuan — joined Tencent
• Guo Daya — moved to ByteDance

These exits fueled speculation that DeepSeek was hemorrhaging talent to deep-pocketed rivals. But the V4 technical report suggests the departures, while real, represented a small fraction of the overall team.

The visibility of these moves says more about the AI talent market's intensity than about DeepSeek's internal stability. In China's large language model race, every senior researcher's LinkedIn update becomes industry news.

Why Fundraising Now? The Valuation Strategy

DeepSeek has historically been self-funded through its parent company, High-Flyer, a quantitative trading firm. The decision to pursue external capital marks a significant strategic shift.

Industry observers almost unanimously point to one motivation: Liang Wenfeng wants to establish a clear, external valuation for DeepSeek. This gives core employees holding equity a tangible number — a powerful retention tool in a market where rivals dangle massive compensation packages.

Without a fundraising round, employee equity remains theoretical. A formal valuation from external investors transforms paper wealth into something concrete and comparable to competing offers.

What This Means for the Global AI Race

DeepSeek has emerged as one of the most technically impressive AI labs globally, challenging assumptions about the resources needed to build frontier models. The company's R1 reasoning model and subsequent releases have drawn attention from Silicon Valley to Beijing.

The retention data matters for several reasons:

• Team continuity drives consistent research output and institutional knowledge retention.
• Low turnover signals strong internal culture and alignment with the company's mission.
• Fundraising timing suggests leadership is proactively addressing long-term talent retention before it becomes a crisis.