DeepSeek in Talks for $4B Raise at $50B Valuation

Chinese AI startup DeepSeek is in talks to raise up to $4 billion in its first external funding round, potentially valuing the two-year-old company at $50 billion, according to sources familiar with the discussions.

The funding discussions, which began recently, have attracted interest from state-backed investment vehicles, including China's national artificial intelligence fund valued at about 8.8 billion and the China Integrated Circuit Industry Investment Fund. Major technology firms such as Tencent Holdings, and reportedly Alibaba, are also considering participation. DeepSeek, founded by hedge fund billionaire Liang Wenfeng who controls nearly 90 percent of the company, has until now operated without outside investors. Sources indicate the capital will support expansion of computing infrastructure, investment in advanced chips, and enhanced employee compensation amid intensifying competition for AI talent.

DeepSeek gained prominence in early 2025 with large language models that achieved performance comparable to leading global systems, such as those from OpenAI, but at a fraction of the cost and computing power. The company claims it trained a major model for around $6...