Chinese artificial intelligence startup DeepSeek has initiated discussions with investors for a new fundraising round that could value the company at approximately $70 billion on a pre-investment basis, according to sources familiar with the matter. The move comes shortly after the company completed its first external financing round, signaling sustained investor appetite for AI firms in China.
The planned fundraising follows DeepSeek's Series A round, which closed in June and raised roughly $7 billion, valuing the Hangzhou-based company at nearly $60 billion. That round marked DeepSeek's first external capital raise and attracted backing from major Chinese technology firms, including Tencent Holdings, NetEase, JD.com, and Contemporary Amperex Technology Ltd. (CATL), the world's largest electric-vehicle battery manufacturer. Venture capital firms such as Monolith, Loyal Valley Capital, and Shixiang also participated.
According to one source cited by the Financial Times, DeepSeek moved quickly to launch another fundraising round because the initial financing was limited to a select group of investors. As a result, other investors remained eager to back what many view as a national AI champion and continued seeking opportunities to participate. Another source noted that discussions for the latest fundraising remain in the preliminary stages and that the company's valuation could still change as negotiations progress.
In addition to the fundraising efforts, DeepSeek is reportedly considering a domestic initial public offering on Shanghai's Star Market. A listing on that exchange would align with Beijing's stated objective of having an AI model developer listed on the Star Market, which currently lacks one. Meanwhile, Hong Kong-listed Zhipu AI and Minimax are also pursuing listings on mainland Chinese stock exchanges.
Despite these IPO ambitions, the company's immediate priorities center on developing newer and more capable AI models as competition intensifies both within China and globally. Among its domestic competitors is Zhipu AI, whose latest GLM-5.2 model has received global recognition for significant improvements in coding capabilities.
DeepSeek has also accelerated recruitment to support its growth ambitions. In late June, the company announced plans to "at least double the size of each department" and posted 33 job openings across seven major categories. The available positions cover areas including full-stack development and algorithms, AI core system research and development, deep learning research, model data strategy, product management, and engineering.
The company's latest fundraising efforts, reported IPO considerations, and workforce expansion together indicate that DeepSeek is continuing to invest in growth as competition in the artificial intelligence sector intensifies. While discussions over the new financing remain at an early stage and valuation details could still change, investor appetite for the company appears to remain strong following its landmark first external funding round.
For broader context on AI-related market movements, see our coverage of Evening Digest: Trump Scraps Hormuz Fee, DeepSeek Preps IPO, Gold & Oil Rally and South Korea's KOSPI Plunges 5.2% as AI Valuation Fears Spark Chip Rout.
This article is for informational purposes only and does not constitute financial advice.
