DeepSeek discusses a new funding round weeks after raising $7bn

In short: DeepSeek is in early talks to raise more money, about a month after it closed its first major funding round.

What happened

DeepSeek, an AI start-up based in Hangzhou, has started preliminary talks with new investors about opening another funding round, according to the Financial Times.

The company finished its first-ever round of financing around the end of May. The FT reports it raised about $7bn and was valued at $52bn, including the money raised.

Now, people familiar with the talks say a new round could value DeepSeek at about $71bn before the deal. That would be a 37% increase, although the terms are not final.

Why it matters

AI systems need a lot of computing power, which is expensive. Building a data center (a warehouse full of computers) and buying AI chips (specialized computer parts used to run AI) can cost billions. If DeepSeek raises again so quickly, it suggests the company expects to spend heavily to keep up with rivals in China and globally.

The FT says DeepSeek is also pushing into “AI agents,” meaning software that can carry out tasks on its own, like a digital assistant that does more than answer questions. That usually requires even more computing power. DeepSeek is also using earlier funding to expand teams and hire more researchers as competition for talent increases.

Source: Financial Times