Key facts
- DeepSeek is reportedly in talks to raise $1.5 billion in new funds.
- The company's valuation is reportedly around $71 billion for this new funding round.
- This potential funding comes one month after DeepSeek raised $7 billion at a $50 billion valuation.
- DeepSeek is preparing for an initial public offering, targeting a 2027 debut.
- The Chinese AI developer's technology is noted for its efficiency and cost-effectiveness compared to U.S. models.
- DeepSeek's cloud service utilizes chips from Chinese company Huawei Technologies.
Chinese AI developer DeepSeek is reportedly in discussions to secure approximately $1.5 billion in new funding at a valuation of around $71 billion. This potential fundraising effort comes shortly after the company announced it had raised $7 billion in its first-ever outside funding round just a month prior, at a valuation of approximately $50 billion.
DeepSeek, founded in 2023, has gained significant attention for its AI technology, which is described as more efficient and cost-effective than that of U.S. competitors. The company is also reportedly preparing for an initial public offering, with a debut anticipated in 2027, though an earlier end-of-year debut is also a possibility.
In June, DeepSeek's technology accounted for nearly 23% of all tokens processed by Vercel, an enterprise-focused AI gateway, highlighting its growing popularity. This performance places it closely behind Anthropic, which processed 32% of tokens. The company's success demonstrates the competitive performance of Chinese open-source models against top U.S. AI labs, even amidst U.S. export controls on advanced chips. DeepSeek's cloud service operates using chips manufactured by Huawei Technologies.
Investors in DeepSeek include Tencent and Beijing's National Artificial Intelligence Industry Investment Fund, according to Bloomberg.