Beijing — Chinese AI start-up DeepSeek could be valued at as much as $50bn in its maiden fundraising drive, three sources said, as the large language model builder seeks to reverse its years-long strategy of rejecting outside funding.
China’s 60-billion yuan ($8.8bn) national AI fund, founded in January last year, is in talks to be a lead investor in DeepSeek’s fundraising, said one of the sources familiar with the matter.
The start-up could raise $3bn to $4bn from the funding round to fuel its computing capabilities and improve employee benefits, said separate sources with knowledge of the matter.
Chinese tech giant Tencent Holdings has also been in talks to invest in DeepSeek, said the sources, who all declined to be named, as the information is confidential.
DeepSeek did not immediately respond to Reuters requests for comment.
The China Integrated Circuit Industry Investment Fund (CICF), which is the main banker of the national AI fund, declined to comment. Tencent declined to comment.
The Financial Times first reported on Wednesday, citing sources, that the CICF is in talks to lead DeepSeek’s first fundraising, which could value the frontier AI lab at about $45bn.
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