Chinese AI company DeepSeek is reportedly in talks to raise its first major venture capital funding round, with its valuation reportedly climbing quickly from about $20 billion to as much as $45 billion.
The company became widely known in 2025 after launching an AI model that matched strong performance from leading U.S. systems while using far less computing power and lower costs. It has remained competitive in areas like reasoning and coding, and its models are openly available to the public.
DeepSeek was founded by billionaire Liang Wenfeng, who still owns most of the company. He previously avoided outside investment, but is now considering funding to help retain employees as competition for top AI talent increases.
Reports say the funding round may be led by a Chinese state-backed investment fund focused on strengthening local chip and AI development. This fits into China’s wider effort to reduce reliance on U.S. technology.
The company’s systems are being optimized to run on Huawei chips, supporting that strategy. Other major Chinese tech firms, including Alibaba and Tencent, are also reportedly in discussions to take part.
.avif)
