DeepSeek eyes new funding round at around $70B valuation

Chinese artificial intelligence start-up DeepSeek has begun discussions with investors for a new fundraising round that could value the company at around $70 billion on a pre-investment basis.

The move comes shortly after the company completed its first external financing round, highlighting continued investor interest in the AI firm.

The planned fundraising follows DeepSeek's recently completed Series A financing round in June, which marked the company's first external capital raise.

According to sources cited by the Financial Times, the round raised approximately $7 billion and valued the Hangzhou-based company at nearly $60 billion.

One source said that 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 looking for opportunities to participate.

Major Chinese technology firms backed the previous round

DeepSeek's earlier funding round attracted support from several leading Chinese technology companies.

The investors included Tencent Holdings, NetEase, and JD.com, Contemporary Amperex Technology Ltd. (CATL), the world's largest electric-vehicle battery manufacturer, also participated in the financing.

The round additionally included venture capital firms such as Monolith, Loyal Valley Capital, and Shixiang.

Another source told the Financial Times that discussions for the latest fundraising remain in the preliminary stages.

The source added that the company's valuation could still change as negotiations progress.

The company is also said to be considering a domestic IPO

Alongside the fundraising discussions, DeepSeek is also said to be planning a domestic initial public offering on Shanghai's Star Market.

A listing on the exchange would align with Beijing's reported objective of having an AI model developer listed on the Star Market, which currently does not have one.

Meanwhile, Hong Kong-listed Zhipu AI and Minimax are also pursuing listings on mainland Chinese stock exchanges.

Model development remains a higher priority than listing

Despite the reported IPO ambitions.

The company's immediate priorities include 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.

Hiring expansion supports growth ambitions

DeepSeek has also accelerated recruitment as it expands its operations.

In late June, the company said it planned to "at least double the size of each department."

To support that goal, it 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, as well as 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.