BEIJING — DeepSeek has initiated discussions regarding its first external fundraising transaction, a deal that could value the Chinese artificial intelligence developer at approximately $20 billion. The company is currently soliciting bids from major technology groups to support its research operations as of the third quarter of 2024. This proposed round marks the first time the laboratory has sought outside capital since its founding.
The fundraising effort follows a period of intense capital expenditure required to maintain competitive research models. DeepSeek requires substantial resources to procure specialized processors and hire engineering teams, according to information provided on Tuesday. The company has not disclosed the specific amount of capital it intends to raise, nor has it provided a deadline for the finalization of the deal.
Tencent and Alibaba have both reportedly assessed the potential investment opportunity in recent weeks. A spokesperson for the laboratory confirmed that no public announcement has yet clarified whether either company will become an investor or what ownership stakes may be offered. The talks highlight the recurring costs associated with training large language models, which require more than 1,000 advanced chips to operate effectively.
Both Tencent and Alibaba operate extensive cloud businesses that could provide the necessary infrastructure for DeepSeek to scale its commercial operations. An investment would allow these firms to deploy artificial intelligence tools across their existing consumer products, which serve millions of users daily. The companies have not confirmed the exact terms of any potential equity split as of this week.
A valuation near $20 billion would place DeepSeek among the most valuable private artificial intelligence firms in China. The laboratory faces a competitive landscape where developers must secure reliable access to computing power to handle complex reasoning tasks. If the discussions result in a transaction, the agreement could influence how other technology groups in the region approach partnerships through the end of 2025.
