Chinese AI startup DeepSeek could be valued at up to $50 billion in its maiden fundraising drive, three sources said, as the large language model builder seeks to reverse its years-long strategy of rejecting outside funding.
China’s 60-billion-yuan ($8.8 billion) national artificial intelligence fund, founded in January last year, is in talks to be a lead investor in DeepSeek’s fundraising, according to a sources.
The startup could raise $3 billion to $4 billion from the funding round to fuel its computing capabilities and improve employee benefits, said separate sources with knowledge of the matter.
Chinese tech giant Tencent Holdings has also been in talks to invest in DeepSeek, said the sources, who all declined to be named as the information is confidential. DeepSeek did not immediately respond to Reuters requests for comment.
The China Integrated Circuit Industry Investment Fund, which is the main banker of the national AI fund, declined to comment. Tencent also declined to comment.
The Financial Times first reported on Wednesday, citing sources, that China Integrated Circuit Industry Investment Fund is in talks to lead DeepSeek’s first fundraising that could value the frontier AI lab at about $45 billion.
The maiden fundraising comes at a time when DeepSeek is losing ground to domestic competitors with deep pockets from tech giants such as ByteDance and Alibaba to upstarts like MiniMax and Moonshot AI that have raised billions from either private or public markets.