Chinese AI firm DeepSeek is considering external funding for the first time.

It has drawn interest from Alibaba and government-backed entities like China Investment Corp and the National Social Security Fund, according to The Information.

The Beijing-based company gained prominence in January with cost-effective AI models but has faced resource strains and service outages, prompting the need for additional funding for AI chips and servers.

DeepSeek’s executives and its hedge fund parent, High-Flyer Capital Management, may also explore revenue-generating business models.

This move aligns with China’s broader push to enhance its technological capabilities.

Details on potential funding arrangements have not been disclosed.

Recent DeepSeek developments