DeepSeek is in discussions to potentially double its funding target from 50 billion yuan to 100 billion yuan, driven by substantial interest from state-backed funds and corporate investors, including Tencent and CATL. The company is carefully vetting investors, focusing on government and corporate entities while excluding private investment funds.
This funding round, which has seen delays due to investor hesitance over pricing, aims for a valuation of approximately 500 billion yuan ($75 billion). DeepSeek's previous funding round raised 50 billion yuan and indicated a valuation of around 350 billion yuan. The startup's recent AI model releases have intensified competition in the sector, contributing to a sell-off in U.S. tech stocks.
Founder Liang Wenfeng has emphasized the importance of advancing technology toward artificial general intelligence, despite acknowledging that Chinese AI firms still lag behind their U.S. counterparts. DeepSeek is preparing for a possible IPO on Shanghai's STAR Market, with plans to finalize this funding round soon