Chinese tech giants Tencent and Alibaba are reportedly in discussions to invest in artificial intelligence startup DeepSeek, which is seeking funding at a valuation exceeding $20 billion, according to a report by The Information.
DeepSeek, owned by hedge fund High-Flyer Capital Management, has recently begun exploring external funding for the first time. Earlier discussions had targeted raising at least $300 million at a valuation of around $10 billion, but strong investor interest has significantly increased its expected valuation.
The ongoing talks highlight the massive capital requirements associated with developing advanced AI systems, particularly as companies race to build more powerful models and autonomous AI agents. Both Tencent and Alibaba are actively expanding their AI capabilities, making DeepSeek a strategic investment opportunity within China’s rapidly evolving AI ecosystem.
However, the discussions are still in progress, and both the final investment size and valuation may change. None of the companies involved have officially confirmed the development, and the details remain unverified independently.
DeepSeek gained global attention after the release of its AI models, which disrupted the market and pushed competitors to accelerate their own developments. The potential investment underscores intensifying competition in the AI space, where both established tech giants and emerging startups are vying for leadership in next-generation artificial intelligence technologies.
