Chinese AI startup DeepSeek to raise $7 billion in maiden funding round: Report
Beijing, June 3
,: Chinese AI startup DeepSeek is seeking $7 billion in what is the AI firm's maiden fundraising, according to a Reuters report.
The Chinese AI player is raising the money from Tencent and battery giant CATL and is likely to be valued at between $52 billion and $59 billion, the report cited sources familiar with details.
DeepSeek's AI heft was recognised by Silicon Valley when, early last year, its V3 and R1 models drove the realisation that AI models didn't need big-bang budgets.
The AI firm is likely to raise around $1.48 billion from Tencent Holdings, around $740 billion from CATL and its founder, Liang Wenfeng, committing $2.96 billion of his own money, according to the report.
The slate of investors emphasises the extent to which China is building a self-sufficient AI ecosystem, especially in light of a semiconductor ban imposed by the US that starves the country of the very core of the AI buildout.
However, the scale of the fundraise pales in comparison to what some of the bigger rivals like Anthropic and OpenAI have done recently.
Anthropic finished a recent funding round raising $65 billion and valuing the company at $965 billion, while OpenAI's valuation touched $852 billion after it closed a funding round in March, raising around $122 billion.
What made everyone sit up and take notice of DeepSeek is the shoestring budget on which it developed its AI models, directly putting a challenge to American rivals who are investing billions of dollars in building compute capacity.
China's AI semiconductor regime continues to remain largely indigenously driven, with the electronics behemoth Huawei driving big changes. It recently came up with a breakthrough chip design framework called Tau Scaling that focuses on time scaling rather than the conventional geometric scaling.
The company thanked the US for imposing the curbs that blocked access to ASML's state-of-the-art lithography technology, allowing Huawei to make advancements in chip design without relying on external players.
— ANI
Reader Comments
It's fascinating how DeepSeek achieved so much with minimal resources. But I'm a bit skeptical—$52-59 billion is still a massive valuation for a company that only recently entered the spotlight. Are we overhyping this Chinese AI boom? Also, the funding from CATL and Tencent feels like a state-backed push, not pure market success.
This is a wake-up call for India. China is building a whole AI ecosystem despite US sanctions, while we are still debating policy frameworks. DeepSeek's success with low-cost models proves that innovation doesn't require billions of dollars—just smart engineering. Our startups and government should collaborate more on chip design and AI research. 💡
The scale of this is mind-boggling! $7 billion for a first fundraiser, and yet it's small compared to OpenAI and Anthropic. DeepSeek's story about developing models on a shoestring budget is inspiring, but I worry about the long-term sustainability. India should focus on niche areas like AI for agriculture or healthcare instead of chasing these giants.
The US chip ban backfiring is poetic justice—Huawei and DeepSeek are thriving precisely because of those restrictions. India should learn from China's strategy of investing in indigenous chip design and AI research. But let's be honest, our bureaucracy is a major hurdle; we need a more startup-friendly environment to compete globally. 😤
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