Home / Technology / China's Big Fund Eyes AI Lab DeepSeek Valuation Leap
China's Big Fund Eyes AI Lab DeepSeek Valuation Leap
6 May
Summary
- China's Big Fund in talks to lead DeepSeek's $45bn valuation fundraising.
- DeepSeek gained prominence with its open-source R1 model in January 2025.
- The AI lab's valuation surged from $20bn to $45bn in weeks.
China's state-backed "Big Fund" is reportedly in talks to lead a new investment round for AI firm DeepSeek, potentially valuing the company at $45 billion. This strategic backing would solidify DeepSeek's role in China's domestic AI ecosystem. The AI lab gained global attention in January 2025 with the release of its open-source R1 large language model. This model was noted for its training efficiency compared to US rivals.
The valuation of DeepSeek has rapidly ascended from $20 billion to its current $45 billion target in recent weeks. Investors are drawn to the lab's potential, despite its current lack of commercialization focus. The Big Fund's investment would align with President Xi Jinping's drive for technological self-sufficiency, especially in semiconductors and AI, amidst US restrictions.
DeepSeek has also optimized its V4 model for Huawei's Ascend chips, signaling closer integration within China's tech supply chain. This development comes as Huawei's AI chip sales rise in China. The country aims to build a robust AI ecosystem, a move that could challenge US dominance in the global AI landscape, according to Nvidia's CEO.
