DeepSeek will change UK AI investment landscape

Published by Mark Cheung on 30 January 2025

Share this article

Chinese AI start-up DeepSeek will change the investment landscape for UK AI start-ups beyond recognition, says UK accountants and business advisers Kreston Reeves.

In a matter of hours, it has shown what can be achieved with a modest investment, the firm says, and will likely accelerate further the UK AI landscape.

Mark Cheung, a Corporate Finance specialist at Kreston Reeves who has helped several AI start-ups raise significant funds and list on the UK stock market, comments.

“It is estimated that some £200m is being invested in AI every single day in the UK, but overnight DeepSeek has shown just what can be achieved with a modest investment. It will accelerate the UK AI landscape further, but will require AI start-ups and those seeking VC or PE investment to rethink their offer to investors. Will investors want to stump up hundreds of millions of pounds only to discover new AI models achieving the same or similar for a fraction of the cost? It will offer considerable hope too to the UK government that its ambitions to build an AI powerhouse are achievable against the financial muscle of the US.”

“However, the UK has struggled to keep successful technology start-ups as they grow and seek greater levels of investment or eventual listing. The US will remain a strong pull, irrespective of the early stage investment landscape.”

If you want to know more about raising funds for AI startups, contact a member of our technology team.

Share this article

Email Mark

    • yes I have read the privacy notice and am happy for Kreston Reeves to use my information






    Related people

    Email Jihad

      • yes I have read the privacy notice and am happy for Kreston Reeves to use my information






      Email Akshar

        • yes I have read the privacy notice and am happy for Kreston Reeves to use my information






        View teamSubscribe

        Subscribe to our newsletters

        Our complimentary newsletters and event invitations are designed to provide you with regular updates, insight and guidance.

          • Business, finance and tax issuesPersonal finance, tax, legal and wealth management issuesInternational business issuesCharity and not-for-profit issues

          • Academies and educationAgricultureFinancial servicesLife sciencesManufacturingProfessional practicesProperty and constructionTechnology

          • yes I agree I have read and accept the privacy policy and am happy for Kreston Reeves email communications I have selected above






          You can unsubscribe from our email communications at any time by emailing [email protected] or by clicking the 'unsubscribe' link found on all our email newsletters and event invitations.