DeepSeek Plans $300 Million Fundraise at $10 Billion Valuation

Chinese AI startup DeepSeek is in discussions with investors to raise at least $300 million at a valuation of about $10 billion, reports Reuters, citing information from The Information. This would mark the company’s first external fundraising effort since its founding.

DeepSeek has previously declined offers from major Chinese venture capital firms and technology companies. The potential funding round reflects growing capital needs for developing and maintaining advanced reasoning and agent-style AI models.

The company gained attention in 2025 when its low-cost R1 model matched the performance of leading U.S. systems while being trained at a fraction of the usual cost. That achievement briefly rattled global AI markets and raised questions about the efficiency of large-scale AI spending.

DeepSeek has been funded entirely by High-Flyer Capital Management until now. The new round would provide resources to expand computing infrastructure and stabilize services as demand for its models increases. U.S. investors may be hesitant to participate due to regulatory and national security concerns, with domestic Chinese investors expected to lead the funding.