Chinese artificial intelligence startup DeepSeek is reportedly in discussions to raise $1.5 billion in new funding at a $71 billion pre-money valuation, according to Bloomberg News.
If completed, the financing would represent another significant increase in the company’s valuation, following its first external funding round, which valued the company at approximately $50 billion before the investment. Reuters reported that round closed on June 16, while the Financial Times said it concluded in late May at a post-money valuation of about $52 billion.
Valuation Continues to Climb
DeepSeek began seeking outside investment earlier this year after operating for around two years with funding from High-Flyer, the hedge fund founded by DeepSeek founder Liang Wenfeng.
According to previous reports, the company initially sought funding at a valuation of around $10 billion in April before attracting strong investor interest that rapidly increased its valuation over the following months.
Bloomberg reported that Liang retains an ownership stake of roughly 78% following the company’s first external financing. Based on the latest valuation discussions, the Bloomberg Billionaires Index estimates his net worth at approximately $36 billion.
IPO Preparations Reportedly Underway
Bloomberg also reported that DeepSeek is working with accounting and banking advisers to complete its financial statements by the end of this year as part of preliminary preparations for a potential initial public offering (IPO).
No exchange has been confirmed, and the company has not publicly announced listing plans.
The startup’s first funding round included investments from companies including Tencent, CATL, JD.com, NetEase, IDG Capital, and China’s National Artificial Intelligence Industry Investment Fund, according to previous reports.
AI Growth Supports Investor Interest
DeepSeek has gained attention for its open-source large language models, which have attracted enterprise users while operating within China’s domestic AI ecosystem.
According to data cited by TechCrunch, DeepSeek accounted for nearly 23% of enterprise AI gateway tokens processed in June, ranking behind Anthropic during the period.
The company competes with global AI developers including OpenAI, Anthropic, and xAI, as well as Chinese rivals such as Moonshot AI, MiniMax, and Zhipu AI, amid continued growth in demand for generative AI technologies.