(Recasts, changes sourcing)
May 6 (Reuters) - Chinese AI startup DeepSeek could be valued at as much as $50 billion in its maiden fundraising drive, three sources said, as the large language model builder seeks to reverse its years-long strategy of rejecting outside funding.
China’s 60-billion-yuan ($8.8 billion) national artificial intelligence fund, founded in January last year, is in talks to be a lead investor in DeepSeek’s fundraising, said one of the sources familiar with the matter.
The start-up could raise $3 billion to $4 billion from the funding round to fuel its computing capabilities and improve employee benefits, said separate sources with knowledge of the matter.
Chinese tech giant Tencent Holdings (0700.HK) has also been in talks to invest in DeepSeek, said the sources, who all declined to be named as the information is confidential.
DeepSeek did not immediately respond to Reuters requests for comment.
The China Integrated Circuit Industry Investment Fund, which is the main banker of the national AI fund, declined to comment. Tencent declined to comment.
The Financial Times first reported on Wednesday, citing sources, the China Integrated Circuit Industry Investment Fund is in talks to lead DeepSeek’s first fundraising that could value the frontier AI lab at about $45 billion.
($1 = 6.8110 Chinese yuan renminbi)

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- Chinese AI startup DeepSeek is aiming for a valuation of up to $50 billion in its first fundraising round, reversing its previous stance on outside investment.  
- The national AI fund of China is negotiating to be a lead investor, with possible fundraising of $3 billion to $4 billion to enhance computing power and employee benefits.  
- Additionally, Tencent Holdings is also discussing potential investment in DeepSeek, but the company has not officially commented on the matter.

Reuters

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DeepSeek

DeepSeek could be valued at up to $50 billion in first fundraising, sources say