Chinese artificial intelligence startup DeepSeek has begun discussions with potential investors for a new funding round, just weeks after completing a US$7 billion financing round in early June, according to a report by the Financial Times.
The company is seeking a pre-money valuation of approximately US$71 billion, representing a sharp increase from the roughly US$50 billion valuation achieved during its first external fundraising round. That earlier financing attracted high-profile investors, including Tencent Holdings Ltd. and Contemporary Amperex Technology Company Limited (CATL).
The latest fundraising underscores growing investor confidence in DeepSeek, which has rapidly emerged as one of China’s leading AI developers following the release of an advanced AI model last year. The model demonstrated that sophisticated artificial intelligence systems could be developed using fewer computing resources, challenging assumptions about the scale of hardware required for cutting-edge AI.
DeepSeek’s breakthrough also highlighted the ability of Chinese technology companies to compete with Silicon Valley rivals despite United States export restrictions on advanced semiconductor technology.
According to people familiar with the matter, the proceeds from the proposed funding round will be used primarily to expand the company’s computing infrastructure. Increasing access to computing power has become a strategic priority for AI developers globally as they race to build and deploy increasingly sophisticated models.
Bloomberg News also reported that DeepSeek’s senior management has told prospective investors the company intends to prioritise fundamental AI research over near-term commercial returns.
Founder Liang Wenfeng reportedly said during at least one investor meeting that DeepSeek remains committed to developing open-source AI models while continuing its pursuit of artificial general intelligence (AGI), reinforcing the company’s long-term research-focused strategy.
The proposed fundraising comes amid intensifying global competition in artificial intelligence, with leading AI laboratories investing heavily in data centres and computing infrastructure to support the development, training and deployment of next-generation AI systems.
