A state-backed fund is in talks to lead a funding round that would value Chinese AI lab DeepSeek at $45 billion, signaling a major acceleration in China's push for technological independence.
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China's DeepSeek Nears $45 Billion Valuation in State-Led Funding
Chinese artificial intelligence startup DeepSeek is in discussions to raise its first major funding round at a valuation that could reach approximately $45 billion, a deal that would mark a significant step in the country's drive for technological self-sufficiency. The talks are being led by the China Integrated Circuit Industry Investment Fund, the nation's largest state-backed semiconductor investment vehicle, according to a Financial Times report citing people with knowledge of the discussions.
"This investment would signal Beijing's clear intent to build a fully domestic AI champion, from the silicon up to the large model," said Rachel Kim, a semiconductor analyst at Edgen. "Using the Big Fund to lead the round is a strategic move to ensure DeepSeek has access to the hardware and manufacturing resources it needs to compete globally."
The potential financing underscores the intensifying global competition in artificial intelligence, where access to advanced semiconductor chips and the capital to acquire them are critical barriers to entry. If the $45 billion valuation is finalized, it would place DeepSeek among the most valuable AI startups in the world, rivaling established players in the U.S. and elsewhere. The company has not yet disclosed performance benchmarks for its models, making direct comparisons to competitors difficult.
The involvement of the "Big Fund" is pivotal. The fund was established to build a robust domestic semiconductor industry and reduce China's reliance on foreign technology, particularly from the U.S. By backing DeepSeek, Beijing is not just investing in a software model, but in a vertically integrated strategy where state capital supports a national AI champion. This move could accelerate DeepSeek's development but may also attract further scrutiny from Washington, potentially intensifying geopolitical tech tensions. The deal is expected to close in the coming months, pending regulatory approvals.
This article is for informational purposes only and does not constitute investment advice.
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