A Chinese artificial intelligence (AI) startup, DeepSeek, is in talks to secure a funding round aiming to raise a minimum of $300 million, potentially valuing the firm at $10 billion, as per sources familiar with the situation cited by The Information. The company, known for its cost-effective AI models that caused disruptions in the industry and impacted stock market stability last year, reportedly rejected numerous funding offers from prominent Chinese venture capital firms and tech giants.
The necessity of substantial capital for the development and operation of advanced AI models, particularly as the industry trends towards intricate reasoning systems and agentic applications, has been underscored in a report by Reuters. DeepSeek has yet to comment in response to Reuters’ request for clarification, with Reuters noting its inability to independently verify the information.
Earlier this year, Reuters disclosed that DeepSeek had not showcased its primary model to American chip manufacturers for performance enhancements. Additionally, the company reportedly utilized Nvidia’s cutting-edge chip to train one of its newer models, despite restrictions on such usage due to export regulations. In a bid to reduce reliance on foreign technology, China has been promoting the adoption of domestically produced processors by local firms.