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AI
Chinese AI leader DeepSeek is set to close its first external funding round, potentially valuing the company at $50 billion.
Chinese artificial intelligence company DeepSeek is on the verge of finalizing its first-ever external fundraising round, a move that could place its valuation as high as $50 billion, the South China Morning Post reported Saturday, citing three sources familiar with the matter. The company is close to sealing the deal as a major state-backed investment vehicle joins the financing, backing what is seen as a national technology champion.
The funding round is supported by a group of state-linked investors, including subsidiaries specializing in artificial intelligence under the third phase of China's National Integrated Circuit Industry Investment Fund, according to the sources. Global investment firm Hill House also took part in the financing negotiations, as did Tencent, the Chinese gaming and social media giant.
The potential $50 billion valuation marks a fivefold increase from the initial $10 billion figure reported by local media last month when the round began. This jump reflects the intense interest from some of China's largest state-backed investors and underscores DeepSeek's growing importance in the heated artificial intelligence race between the United States and China.
In its first funding round, DeepSeek is prioritizing state-backed and industrial investors, including local government guidance funds and affiliated platforms. The company favors those who can provide strategic resources such as AI infrastructure over those who can only offer capital, sources previously told the South China Morning Post.
The sources cautioned that the final valuation could still shift as negotiations continue.
