Report: DeepSeek (深度求索) Seeking First External Funding Round, Valuation Exceeds US$10 Billion

It has been reported that DeepSeek (深度求索), a Beijing-based AI startup, is in talks to bring in outside capital for the first time as it races to build large, cutting‑edge models. According to The Information, cited by IT之家, the company has been courting investors after previously declining offers from China’s top venture capital firms and technology giants. Why now? Because building frontier AI models is capital intensive—and competition is fierce.

Funding push

Reportedly DeepSeek is aiming to raise at least US$300 million at a valuation of no less than US$10 billion (roughly RMB 68.35 billion at current exchange rates). The new funds would be used to expand model scale, recruit talent and accelerate global market expansion. It has been reported that some outlets have floated much larger valuation figures — as high as US$150 billion — but those claims remain unverified. DeepSeek has not responded to requests for comment.

Strategic and geopolitical context

For Western readers: China’s AI sector is rapidly maturing, but it operates under different constraints than U.S. peers. Export controls on advanced AI chips, heightened scrutiny of cross‑border tech ties, and broader U.S.–China tensions can all affect hardware access, partnerships and international growth plans. Investors will weigh these geopolitical risks alongside the startup’s technical promise and the recent thaw in AI financing.

If the round completes at the reported terms, DeepSeek would cement itself as a major player in China’s AI infrastructure scene and a closely watched test case of investor appetite for large, capital‑hungry AI challengers. Will global backers step up where domestic offers were once rebuffed? The market will be watching.