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DeepSeek eyes $10b funding at $45b valuation

DeepSeek is in late-stage talks to raise 70 billion yuan (US$10 billion), at a roughly US$45 billion pre-money valuation.

Potential backers include the National Artificial Intelligence Industry Investment Fund, Tencent, IDG Capital, and Monolith Capital.

The state-backed fund is discussing an investment of about 10 billion yuan (US$1.47 billion), though terms and participants could still change.

DeepSeek will keep building open-source models and focus on AI research over near-term commercialization, even as the company expands into agentic AI.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

State ambition and engineering work support DeepSeek’s valuation

  • Technical papers describe systems such as DeepSeek Sparse Attention, which handles very long inputs with less computing cost 1.
  • On some reasoning tasks its models reportedly match frontier systems such as Gemini-3.0-Pro, Google’s advanced AI model, which helps explain investor interest at this price 1.
  • The fundraising also fits China’s goal of becoming a global AI leader by 2030, backed by state financing programs such as a US$138 billion effort from Bank of China, one of the country’s biggest state-owned banks 2.
  • DeepSeek still faces U.S. export controls on advanced chips. It relies on Nvidia graphics processing units (GPUs), chips widely used to train AI models, for large-scale training 2. It is also testing Huawei Ascend chips for inference, the stage when a trained model generates answers 2.

DeepSeek’s state backing and “open” model could shape the AI contest

  • DeepSeek calls some models “open-source,” yet at least some use a custom license with strong limits on use, so they do not meet the usual definition of open-source software 3.
  • That setup can help it build a developer community while keeping control over how the technology is used.
  • A high-profile investment from a state fund could draw more U.S. scrutiny. DeepSeek has already been banned on some U.S. government devices and by several U.S. states 2.
  • The mix of private technical work, heavy state funding, and a restrictive “open” license could become a template for countries building AI capabilities outside the U.S. tech ecosystem 2.

Recent DeepSeek developments

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