DeepSeek valuation doubles to $20 billion as Tencent and Alibaba join funding talks

DeepSeek in Talks to Raise at $20 Billion Value, Information Says

Chinese technology giants Tencent Holdings Ltd. and Alibaba Group Holding Ltd. are in discussions to invest funds into DeepSeek that would value the artificial intelligence startup above $20 billion, according to The Information. This is the first capital raise by the company, The Information reported, citing people familiar with the matter. The publication earlier reported that DeepSeek was looking to raise $300 million at a valuation of at least $10 billion. Representatives for DeepSeek, Alibaba and Tencent did not immediately respond to requests for comment. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Plus Signed UpPlus Sign UpPlus Sign Up By continuing, I agree to the Privacy Policy and Terms of Service. DeepSeek is owned by Chinese hedge fund Zhejiang High-Flyer Asset Management, whose cofounder Liang Wenfeng formed the startup in 2023. It released a breakthrough model in January 2025 that shook the AI world, achieving performance comparable to US rivals despite China's limited access to international talent and cutting-edge semiconductor technology. It has continued with a rapid pace of new releases and has differentiated itself from US companies including OpenAI and Anthropic PBC by pushing out low-cost, open source models. E-commerce firm Alibaba is already a major player in artificial intelligence, unveiling a new AI model earlier this month that can create 3D environments and interactive videos. The company reorganizedBloomberg Terminal to bring its AI services and development into a single business unit last month. Tencent recently said it would double investmentsBloomberg Terminal in AI to more than 36 billion yuan ($5.2 billion) this year. An investment in DeepSeek would likely be a hedge. The popularity of free-to-download, open-source models in China has made it hard for the bigger players to translate their AI advances into profits. The free, open-source AI agent software OpenClawBloomberg Terminal became wildly popular after launching in the country. DeepSeek is expanding to try and take on OpenClaw, whose software can carry out tasks without human intervention. The Chinese startup posted more than a dozen job listingsBloomberg Terminal for agent-related roles, Bloomberg News reported in March. US-traded shares of Alibaba Group rose 1.6% in premarket trading on Wednesday.

DeepSeek targets $20bn valuation to stop poaching of staff

Chinese AI start-up DeepSeek is raising funds for the first time in a bid to retain employees being paid with stock options and ensure they are not poached by rivals. The Hangzhou-based AI model developer is speaking to a small group of strategic investors about a fundraising that could value it at more than $20bn, according to two people with knowledge of the discussions. While DeepSeek did not have as much free cash flow as its bigger competitors, there had not been an urgent or significant need for outside capital, said the people. Instead, the fundraising is mainly to assuage the company's researchers, some of whom have left for rivals whose valuations have soared in the past year. Stock options typically comprise a large part, if not the majority, of an AI researcher's salary. The amount raised was expected to be a nominal figure in the low hundreds of millions of dollars, less than the billions typically raised by peers, the people said. DeepSeek's founder Liang Wenfeng was also considering other options to establish a valuation, including a share buyback or a valuation method based on the company's performance, in case fundraising terms could not be reached, said one of the people. The company stunned the world last year when it released its R1 model, touting capabilities close to those of its US peers such as ChatGPT but at a much lower cost. Despite the sudden fame, Liang had turned down outside investors, choosing to focus on research instead of commercialisation, the FT reported last year. He has been funding the company with money from his quantitative trading firm. For financial institutions, DeepSeek's lack of a business model could inhibit fundraising. For strategic investors, who typically seek synergies with their own operations in a deal, Liang's unwillingness to share information beyond bare-minimum financial figures also posed a challenge, said one of the people familiar with the talks. "It's not a typical investment. It would make the most sense to bring in partners with strong cloud and compute capabilities" to feed DeepSeek's demand for computing power, said the person. "Otherwise state-backed funds with no performance pressure may be the most suited investors." In the past few months, DeepSeek has lost a number of key researchers. Guo Daya, a leading author of the R1 paper, joined TikTok owner ByteDance, while a veteran of DeepSeek's model training team, Wang Bingxuan, had left for Tencent, said people familiar with the moves. While DeepSeek's cash-based pay was competitive, said one of the people, the lack of a clear valuation had put it at a disadvantage not only against tech giants including Alibaba and Tencent but against start-up peers too. Moonshot, operator of the Kimi AI models, was valued at $18bn in its last fundraising round, according to people with knowledge of its valuation. Two Hong Kong-listed developers, MiniMax and Zhipu, are valued at $34bn and $58bn respectively. Nonetheless, the people familiar with DeepSeek's fundraising efforts said only a small number of researchers had left and most of the staff were dedicated to Liang's idealistic approach. The company provides a flexible work environment and the linear reporting structure of a research lab, which is difficult to find elsewhere. "If more valuation certainty is provided, DeepSeek should be able to continue what it does best: pursue the ultimate artificial intelligence despite all the noise," said one of the people. DeepSeek did not respond to a request for comment. The Information first reported on the company's fundraising plans. Additional reporting by Cheng Leng in Beijing

China's DeepSeek is raising funds at $10 billion valuation, The Information reports

April 17 (Reuters) - Chinese artificial intelligence startup DeepSeek is in talks with investors to raise at least $300 million at a valuation of $10 billion, The Information reported on Friday, citing two people familiar with the matter. The company, whose low-cost models took the AI industry by storm and rattled stock markets last year, ⁠has previously turned down multiple funding offers from China's top venture capital firms and tech giants, the report said. The potential fundraise underscores the intense capital requirements for developing and running top-of-the line AI models amid the rise of advanced reasoning and agentic bots. DeepSeek did not immediately respond to a Reuters request for comment. ⁠Reuters could not immediately verify the report. As a Chinese startup, some U.S. venture capitalists might hesitate about investing in DeepSeek, the report said. Reuters reported earlier this year that ⁠the company did not show U.S. chipmakers its flagship model for performance optimization, and had trained one of its newest models on ⁠Nvidia's (NVDA.O), opens new tab most advanced chip despite it being banned. China, meanwhile, has been working to ensure that local ⁠firms use domestic processors and reduce reliance on foreign technology. Reporting by Abu Sultan and Zaheer Kachwala in Bengaluru; Editing by Anil D'Silva and Devika Syamnath Our Standards: The Thomson Reuters Trust Principles., opens new tab

DeepSeek seeks outside funding at $10 billion valuation

Chinese AI startup DeepSeek is in talks to raise at least $300 million at a valuation of $10 billion, according to The Information, which cited two people familiar with the matter. The fundraise would mark the first time DeepSeek has sought outside capital. Prior to this round, approaches from prominent Chinese venture capital firms and major tech companies had all been rebuffed, The Information reported. The Information noted that DeepSeek's Chinese origins could give pause to potential backers in the United States. DeepSeek did not respond to a request for comment from Reuters, which said it could not verify the report. This move reflects a larger challenge in the AI industry. Developing and maintaining advanced models, especially as they become more capable, demands significant financial resources. DeepSeek drew international attention after its low-cost models briefly matched the performance of leading American AI systems in early 2025, rattling stock markets and prompting scrutiny of the assumptions underlying U.S. AI investment. As of March 2026, the gap between the top U.S. model and its best Chinese competitor stood at just 2.7 percentage points, according to Stanford University's annual AI Index report. DeepSeek's relationship with U.S. chipmakers has been a separate point of tension. Earlier Reuters reporting found that DeepSeek had withheld its primary model from U.S. chip companies seeking to optimize its performance, and that hardware from Nvidia $NVDA subject to export restrictions had been used to train one of its recent models. Separately, Beijing has made reducing dependence on foreign chips a priority, steering companies toward homegrown semiconductor alternatives.

Tencent, Alibaba in talks to invest in DeepSeek at over $20 billion valuation: Report

Chinese tech giants Tencent and Alibaba are reportedly in talks to invest in AI startup DeepSeek. The company is aiming for a valuation exceeding twenty billion dollars. This potential funding highlights the significant capital needed for advanced AI development. Discussions are ongoing, and terms may change. DeepSeek's previous model release had a global impact. Chinese tech giants Tencent Holdings and Alibaba Group are in discussions to invest in artificial intelligence startup DeepSeek, The Information reported on Wednesday, citing four people with knowledge of the talks. Owned by Chinese hedge fund High-Flyer Capital Management, DeepSeek is now aiming to raise funding at ⁠a valuation ⁠exceeding $20 billion, as its initial discussions with prospective investors sparked immense interest, the report said, citing one of the people. Alibaba, Tencent and DeepSeek did not immediately respond to requests for comment. Reuters could not independently verify the report. U.S.-listed shares of Alibaba rose 1.3% in premarket trading. The Information reported on Friday ⁠that DeepSeek started discussions to raise outside capital for the first time, with a target to raise at least $300 ⁠million at a valuation of at least $10 billion. This potential fundraise underscores the intense capital required to develop and operate cutting-edge AI models, especially with the growing complexity of advanced reasoning and autonomous agentic bots. The talks are still underway and both the valuation and the amount of capital to be raised could still change, according to the report. As it is a Chinese startup, some US venture capitalists might hesitate about investing in DeepSeek, the tech news website ⁠previously reported. Reuters reported earlier this year that the company did not show US chipmakers its flagship model for performance optimization, and had trained one of its newest models on Nvidia's most advanced chip despite it being banned. DeepSeek's initial release in January 2025 triggered a global tech selloff and spurred its Chinese rivals to release upgrades to their own models.

Tencent, Alibaba Eye DeepSeek As Valuation Hits $20B - Alibaba Gr Hldgs (NYSE:BABA), Alibaba Gr Hldgs (OT

Tencent, Alibaba Circle DeepSeek As AI Startup Eyes $20B Valuation That's a sharp jump from earlier discussions that pegged the raise at around $10 billion -- suggesting investor demand is accelerating quickly, the Information reported. A New AI Contender Emerges DeepSeek isn't a typical startup. The company is backed by High-Flyer Capital Management, marking a rare crossover where quantitative finance meets large-scale AI development. DeepSeek has gained attention for building competitive AI models at dramatically lower cost than Western rivals, with some estimates suggesting its systems can run at a fraction of the expense. That cost angle may be key. Why Big Tech Is Circling For Tencent and Alibaba, the interest goes beyond financial returns. Both companies are racing to strengthen their AI ecosystems amid intensifying competition -- domestically and globally. Backing DeepSeek could offer: Access to emerging model capabilities A faster route to scaling AI offerings A hedge against falling behind in the next phase of the AI cycle Valuation Momentum Builds The rapid shift in valuation expectations -- from $10 billion to $20 billion-plus -- signals more than just hype. It points to a broader trend: AI capital is still chasing the next breakthrough, especially in markets where cost efficiency and scalability could reshape the competitive landscape. The Bigger Picture This isn't just another funding round. If talks progress, it would mark a moment where China's established tech giants align with a newer AI player -- potentially accelerating the country's push to stay competitive in the global AI race. And for DeepSeek, the message is clear: the spotlight is only getting brighter. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

DeepSeek Seeks $20 Billion Valuation as Tech Giants Weigh Investment | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Tencent and Alibaba are in talks to invest in the Chinese artificial intelligence (AI) startup as it begins its first round of fundraising, The Information reported Wednesday (April 22), citing four sources with knowledge of the discussions. One of those sources told the publication that DeepSeek hopes to raise funding at a valuation of more than $20 billion, following strong interest among investors. The Information had reported last week that the company had begun talks to raise its first outside capital, hoping to bring in at least $300 million at a valuation of at least $10 billion. The report adds that DeepSeek's focus on offering open-source technology over making money has led to some debate about how it should be valued. The $20 billion is slightly higher than the $18 billion that Moonshot AI, the Chinese startup behind the Kimi series of large-language models, is seeking with its new funding round. Meanwhile, two of DeepSeek's competitors, MiniMax and Zhipu, both went public in Hong Kong in January at a valuation of less than $10 billion but have since seen their values climb to a respective $30 billion-plus and $50 billion-plus, The Information added. But unlike those companies, DeekSeek hasn't generated much revenue, as its models are open-source and its chatbot is free for consumers to use. PYMNTS wrote earlier this year about research by DeepSeek showing a new way to train large language models that allows performance to improve without a proportional uptick in training costs. This goes against one of the main assumptions that has guided the way the AI sector has scaled in the last several years, the report said. "If approaches like DeepSeek's prove reliable beyond research settings, they could alter the economics of AI deployment in sectors that depend on cost discipline, including commerce, payments, and enterprise software," PYMNTS added. "Lower training costs make it easier to build and maintain specialized models tailored to specific workflows, rather than relying on generalized systems that are expensive to update." Meanwhile, DeepSeek and other Chinese AI companies could face sanctions from the U.S. government following allegations that they copied American AI models. As Bloomberg News reported last week, Rep. Bill Huizenga (R-Mich.) has proposed a bill that would direct the government to identify and sanction entities in China and Russia engaged in using improper "query-and-copy" techniques on American AI models.