DeepSeek Seeks Funding at $45B Valuation as China Backs Homegrown AI Rival (theaiinsider.tech)

Chinese AI lab DeepSeek is seeking to raise its first venture capital round with a staggering valuation increase from $20 billion to $45 billion in just a few weeks. The funding is likely to be led by the China Integrated Circuit Industry Investment Fund, with participation from major cloud companies like Tencent and Alibaba. Founded by hedge fund mogul Liang Wenfeng, who maintains nearly 90% control, DeepSeek gained prominence in early 2025 after launching a large language model that rivals top U.S. models while being significantly more cost-effective. This funding round is significant as it reflects China's commitment to creating a self-sufficient AI ecosystem, particularly through state-backed initiatives aimed at establishing domestic chip production capabilities, notably from Huawei. By offering equity to its employees through this investment, DeepSeek aims to retain talent amid fierce competition in the AI sector. The company has also been making strides in keeping pace with advanced models in reasoning and coding, emphasizing the ongoing global race in AI development.