DeepSeek seeks $300M in first outside funding at $10B valuation

DeepSeek Seeks $10 Billion Valuation in First External Funding Round

DeepSeek, a Chinese AI startup, is currently in pursuit of its initial outside funding round with a minimum valuation of $10 billion. As reported by The Information, the company aims to secure at least $300 million in funding to enhance its competitive edge in the development of advanced AI models.

Up to this point, DeepSeek has been solely financed by its parent company, High Flyer Capital Management, a Chinese hedge fund that supported the startup throughout its model development phase. However, recent reports suggest a shift in strategy as DeepSeek initiates discussions with external investors. Previously, the company turned down funding offers from prominent venture capital firms and tech giants in China.

Despite targeting a $10 billion valuation, DeepSeek still lags behind the top players in the AI market. In comparison, OpenAI announced a funding round in February amounting to $110 billion, valuing the company at approximately $840 billion, which later increased to around $852 billion in early April. Anthropic, on the other hand, secured funding in February at a $380 billion valuation, with recent speculations indicating a potential valuation of up to $800 billion for the creator of Claude.

DeepSeek gained significant attention following the success of its R1 model in both Silicon Valley and Wall Street last year. The current fundraising efforts indicate the company’s desire for a larger capital base to remain competitive in the increasingly costly AI landscape.