DeepSeek in talks for $70B pre-money funding

DeepSeek has opened discussions with investors on a fresh fundraising round that could pre-money value the Hangzhou-based artificial intelligence start-up at about $70 billion. The talks come after a June Series A that raised roughly $7 billion and placed the company near a $60 billion valuation.

People familiar with the matter say the follow-up round was launched quickly because the June financing was offered to a limited group of backers, leaving additional investors seeking a chance to participate. Earlier participants in the Series A included Tencent Holdings, NetEase, JD.com, CATL, and venture firms such as Monolith, Loyal Valley Capital and Shixiang.

Sources cautioned the discussions are at an early stage and the $70 billion pre-money figure could change as negotiations proceed.

Company leaders are also reported to be weighing a domestic initial public offering on Shanghai’s Star Market. A listing on that exchange would bring an AI model developer to the bourse. Other Chinese AI firms, including Zhipu AI and Minimax, are pursuing listings on mainland exchanges.

DeepSeek’s stated near-term focus is on advancing model development and expanding product capabilities rather than on listing. Competition in China is increasing; Zhipu AI has released GLM-5.2, which has drawn attention for improvements in coding performance.

In late June the company posted 33 job openings across seven categories, covering full-stack development and algorithms, AI core system research and development, deep learning research, model data strategy, product management and engineering. The company said it plans to “at least double the size of each department.”

The fundraising talks follow the June financing and the recruitment push. People close to the negotiations underscore that valuation and terms remain fluid and that no agreements have been finalized.

If completed at the reported level, the new round would represent a marked increase in valuation within weeks of DeepSeek’s first external financing. Negotiations are ongoing and the company has not announced any final commitments.