Tencent, Alibaba Eye DeepSeek Investment, USD 20 Billion Valuation
- tech360.tv
- Apr 23
- 1 min read
Chinese technology giants Tencent Holdings and Alibaba Group are in discussions to invest in artificial intelligence startup DeepSeek. The startup is aiming to raise funding at a valuation exceeding USD 20 billion, according to a report from The Information.
DeepSeek is owned by Chinese hedge fund High-Flyer Capital Management. Initial discussions with prospective investors for the current fundraise have sparked significant interest.
US-listed shares of Alibaba rose 1.3% in premarket trading following the news.
The Information previously reported that DeepSeek began seeking external capital for the first time, with a target to raise at least USD 300 million at a valuation of at least USD 10 billion.
The investment discussions are ongoing, and both the valuation and the capital sought may still change, the report stated.
Some US venture capitalists might be hesitant to invest in DeepSeek due to its status as a Chinese startup, a tech news website previously reported.
The company reportedly did not demonstrate its flagship model to US chipmakers for performance optimisation. One of DeepSeek's newest models was trained on Nvidia's most advanced chip, despite its ban.
DeepSeek's initial release in January 2025 triggered a global technology selloff. This also prompted Chinese rivals to release upgrades to their own models.
Tencent and Alibaba are in discussions to invest in Chinese AI startup DeepSeek.
DeepSeek aims to raise funding at a valuation exceeding USD 20 billion.
The company is owned by Chinese hedge fund High-Flyer Capital Management.
Source: REUTERS
