This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:58 p.m. on Aug. 27, 2026.
DeepX, an artificial intelligence (AI) semiconductor company that had been mentioned as a candidate for investment by the Public Growth Fund, is pushing to raise 370 billion won in funding solely from private capital without policy funds, according to findings. While DeepX is said to have shifted toward private fundraising in light of its next-generation product development timeline, it was confirmed that, before that, the Public Growth Fund took a negative view of investing in DeepX. After the Public Growth Fund's investment did not materialize, DeepX moved to raise money mainly from the private sector, the explanation goes.
According to the investment banking (IB) industry on the 27th, DeepX is currently conducting a roughly 370 billion won series D fundraising centered on private investors without capital from the Public Growth Fund. In this round, DeepX was said to have been valued at about $2.2 billion (about 3.05 trillion won).
The first tranche of investment has already come in. Existing shareholders BNW Investment and DS Asset Management injected about 42 billion won into DeepX early this month, completing the first closing. DeepX is said to plan to fill the remaining funds with private financial companies and a mix of existing and new investors.
Initially, the market saw a high likelihood that the Public Growth Fund's capital would come into DeepX's latest round. In March, DeepX attended the Public Growth Fund's "K-Nvidia Fostering Project" public-private joint meeting hosted by the Financial Services Commission and the Ministry of Science and ICT, alongside Rebellions, FuriosaAI, HyperAccel, and Mobilint. At the time, the industry expected that, following Rebellions and Upstage, DeepX would be selected as the third investment recipient of the Public Growth Fund.
As recently as April, DeepX was recruiting private matching funds with an eye to direct investment by the Public Growth Fund. Based on a valuation in the 2 trillion won range, a raise of about 600 billion won was discussed.
But the mood shifted afterward. In June, DeepX was pushed down the Public Growth Fund's priority list for AI corporations, and FuriosaAI was lined up to undergo the investment review first. In July, as the investment decision was delayed, DeepX lowered its fundraising target from around 600 billion won to the 300 billion won range. The market heard the company's explanation that, considering the timeline for next-generation product development, it had shifted from waiting for the Public Growth Fund to private investment for financing.
In reality, however, talks on investment between DeepX and the Public Growth Fund do not appear to have gone smoothly. As the two sides discussed investment direction and terms, there was a gap in expectations, and some comments by DeepX's management reportedly created discomfort within the Public Growth Fund. The discussion on policy capital investment then effectively came to a halt.
The industry also sees differing views on DeepX's valuation as having affected the talks. Some securities firms reviewed investing in DeepX but reportedly hesitated to make a final decision due to concerns about the valuation level. As the Public Growth Fund tilted toward not participating, some investors who had been positive also shifted to a wait-and-see stance.
The market is watching the final outcome of this round's fundraising. If DeepX secures the targeted 370 billion won without the Public Growth Fund, it would mean there is ample conviction in viewing DeepX as a company valued in the 3 trillion won range.
An IB industry official said, "How many new investors are secured after the first closing centered on existing shareholders is expected to serve as a gauge of the market's view of the company's valuation."