DeepSeek Seeks Up to $7 Billion in External Funding for AGI Push

DeepSeek, the Hangzhou-based AI lab that has long avoided outside funding, is now seeking between $3 billion and $7 billion in external capital, with valuations potentially reaching $50 billion. The company, founded in 2023 by Liang Wenfeng from quantitative trading firm High-Flyer, is driven by the need for compute infrastructure and top AI talent. The round is reportedly led by state-backed entities including the China Integrated Circuit Industry Investment Fund and the National AI Investment Fund.

DeepSeek prioritizes open-source development and fundamental AGI research over near-term revenue. Its recent V4 Pro and V4 Flash models have demonstrated competitive performance at lower costs, challenging Western AI providers.

For investors, this signals a state-backed push to accelerate domestic AI, potentially pressuring commercial pricing models from companies like OpenAI and Anthropic.