DeepSeek, the Hangzhou-based AI lab that has spent most of its existence avoiding outside money, is now in the middle of what could be one of the largest AI funding rounds in history. The company is reportedly seeking between $3B and $7B in external capital, with valuation discussions reaching as high as $50B.
DeepSeek was founded in 2023 by Liang Wenfeng, whose background traces to High-Flyer, a Chinese quantitative trading firm. For the first few years of its existence, the company funded operations internally through High-Flyer’s resources, deliberately staying away from outside investors.
The push for external capital is being driven by two forces: escalating compute infrastructure demands and the intensifying competition for top AI talent. The round is reportedly being led by state-backed entities including the China Integrated Circuit Industry Investment Fund and the National AI Investment Fund.
Valuation discussions have moved fast. Earlier in 2026, estimates placed DeepSeek somewhere in the $10B to $20B range. By May, that ceiling had more than doubled to $50B.
The open-source AGI bet
