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DeepSeek could hit $45B valuation in first funding round
07 May 2026

DeepSeek, a Chinese artificial intelligence (AI) lab, is in talks to raise its first-ever venture capital round.

In just a few weeks, the company's potential valuation could skyrocket from $20 billion to an astounding $45 billion. The news was first reported by Financial Times and Bloomberg.

Founded by billionaire hedge fund manager Liang Wenfeng, DeepSeek gained prominence in early 2025 with the launch of its large language model (LLM).

DeepSeek's unique approach to AI
Tech prowess

DeepSeek's LLM has been able to match its US counterparts in reasoning and coding, but at a fraction of the cost and computing power.

The models are also open-weight, meaning they can be accessed for free on platforms like Hugging Face.

This unique approach has helped DeepSeek carve a niche for itself in the competitive AI landscape.

Funding round backed by state investment vehicle
Investment details

The upcoming funding round is said to be led by China Integrated Circuit Industry Investment Fund, a state investment vehicle.

The move comes as China looks to fund domestic AI technology and reduce reliance on US tech, especially chips.

Notably, DeepSeek has been optimized to run on chips made by China's hardware giant Huawei Technologies.

Funding to counter competition
Strategic shift

Despite being a major player in the AI space, DeepSeek has never actively sought investors.

However, with competitors trying to lure its researchers away, Wenfeng has decided to raise funds.

The move will also allow him to offer employees shares in the company. This strategic shift shows how seriously DeepSeek is taking the growing competition in the industry.

Potential investments from Tencent and Alibaba
Fact

China's cloud giants Tencent and Alibaba are also reportedly considering investing in DeepSeek. If they do, it would further bolster the company's position in the AI space. The potential backing from these companies shows the growing interest and confidence in DeepSeek's innovative approach to AI.