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Economy July 14, 2026 06:38 AM

DeepSeek reopens fundraising talks weeks after first close, FT says

Chinese AI leader in preliminary discussions for a pre-deal valuation near $71 billion after a May funding milestone

By Caleb Monroe
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DeepSeek has held early discussions with prospective backers about launching a new financing round that would put the company at about $71 billion pre-deal, roughly one month after completing its first major funding round that raised about $7 billion at a $52 billion valuation, the Financial Times reported. The company did not immediately respond to requests for comment. Reuters has also reported DeepSeek is working on its own AI chip to reduce dependence on existing suppliers.

DeepSeek reopens fundraising talks weeks after first close, FT says
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Key Points

  • DeepSeek has started preliminary talks with potential investors about a new funding round that would value the company at about $71 billion pre-deal - sectors impacted: AI, venture capital, technology funding.
  • The company closed its first-ever financing round around the end of May, raising about $7 billion at a $52 billion valuation, including the raised funds - sectors impacted: private markets, startup financing.
  • DeepSeek garnered global attention when its V3 and R1 models earned praise in Silicon Valley, and Reuters reported the company is developing its own AI chip to reduce reliance on Nvidia and Huawei chips - sectors impacted: semiconductors, cloud compute, AI model development.

DeepSeek, the high-profile Chinese artificial intelligence startup, has entered preliminary talks this week with potential investors about opening another financing round, according to a Financial Times report. The new round would carry a pre-deal valuation of roughly $71 billion, the report said.

The discussions come about one month after the company closed its first-ever financing round. That initial round, which completed around the end of May, raised about $7 billion and set the company's valuation at $52 billion, including the newly raised capital, the FT added.

DeepSeek did not immediately respond to requests for comment on the renewed fundraising conversations, the report said. The company has emerged as one of China's best-known AI startups and was described as a national AI champion following rapid attention last year.

DeepSeek achieved broader international recognition early last year when its V3 and R1 models drew praise in Silicon Valley and were seen as a challenge to prevailing U.S. views on Chinese AI capabilities. The startup's model releases contributed to its elevated profile and investor interest.

Separately, Reuters reported earlier this month that DeepSeek is developing its own AI chip. That effort was described as a move that could lessen the company's reliance on chips from Nvidia and Huawei, which DeepSeek has used to train and operate its globally popular models.

Context and implications

The reported talks for a new round follow closely on the heels of the company's first major fundraising and come alongside efforts to build in-house hardware capacity. Both developments are part of the narrative around the company's rapid rise and strategic positioning within the AI sector.

What is not yet clear

The Financial Times report indicates only that preliminary discussions have taken place. It does not confirm terms beyond the reported pre-deal valuation figure, nor does it indicate whether a deal will be completed or on what timeline. DeepSeek's response to inquiries was not immediately available, according to the report.

Risks

  • Uncertainty over whether preliminary talks will convert into a completed financing round; this affects private capital markets and investor allocations in AI startups.
  • Possible ongoing reliance on external chip suppliers until any in-house chip project is finalized, which affects semiconductor supply chains and compute infrastructure for AI.
  • Lack of an immediate comment from DeepSeek leaves timing and terms of any potential new financing unclear, introducing information risk for market participants watching AI funding.

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