May 6 - DeepSeek, a Chinese start-up focused on large language models, could be valued at up to $50 billion in its initial external fundraising, according to three people briefed on the matter. The company has previously avoided outside capital but is now reportedly entertaining a substantial funding drive.
One source with knowledge of the discussions said China’s 60-billion-yuan national artificial intelligence fund - established in January of last year - is in talks to act as a lead investor in the round. The national fund’s main banker, the China Integrated Circuit Industry Investment Fund, has been linked to the talks in other reports and has been associated with the potential lead-investor role.
Separate sources familiar with the planned transaction indicated DeepSeek could seek between $3 billion and $4 billion in new capital. The stated uses for the proceeds are to bolster the start-up’s computing capabilities and to improve employee benefits.
Chinese technology conglomerate Tencent Holdings has also reportedly held investment talks with DeepSeek. All individuals who provided information on these discussions asked not to be identified because the details are confidential.
DeepSeek did not respond to requests for comment. The China Integrated Circuit Industry Investment Fund declined to comment on the matter, and Tencent also declined to comment.
In a separate report on Wednesday that cited unnamed sources, the China Integrated Circuit Industry Investment Fund was said to be in discussions to lead DeepSeek’s inaugural fundraising at a valuation near $45 billion. The discussion in various accounts shows a range in possible valuations as the company lines up potential backers.
For reference, the currency conversion cited in discussions equates $1 to 6.8110 Chinese yuan renminbi.
Context note - Reporting on the talks has relied on anonymous sources and statements that interested parties declined to confirm.