Chinese AI startup DeepSeek has begun talks for its first round of investment. The startup’s market value is reportedly estimated at $45 billion. However, a few weeks ago, DeepSeek was valued at around $20 billion. The startup’s low training costs for its AI models have played a key role in this growth.
DeepSeek founder Liang Wenfeng controls about 90 percent of the startup’s shares. It is reported that rival technology companies’ efforts to attract researchers and a plan to give employees equity shares have accelerated the search for new financing.
The investment round is likely to be led by the China Integrated Circuit Industry Investment Fund, and Tencent and Alibaba are also said to be involved in the talks. The move is seen as part of China’s strategy to strengthen its domestic AI ecosystem amid limited access to US chips.
