The Money TrailApril 17, 2026via The Information
China’s DeepSeek is Raising Money for First Time, At $10 Billion-Plus Valuation
Why it matters
DeepSeek, the Chinese AI startup that blindsided Silicon Valley with R1, is opening its cap table for the first time. This marks a critical shift: even well-funded private models need external capital to sustain the compute arms race against OpenAI and Anthropic.
Key signals
- DeepSeek seeking outside funding for first time
- $10B+ valuation
- Previously self-funded by High-Flyer Capital Management
- Had turned down multiple offers from China's top VCs and tech giants
- R1 model gained significant traction in 2025
The hook
$10B+. That's DeepSeek's valuation as it raises outside capital for the first time—and it's a signal that even China's AI darling needs more firepower to compete.
DeepSeek is in talks to raise outside capital for the first time, seeking to beef up its financial war chest so it can better compete in the costly battle to develop leading AI models, according to five people familiar with the matter.
DeepSeek is owned by Chinese hedge fund High-Flyer Capital Management, which has financed the startup so far. DeepSeek, whose AI model R1 took both Silicon Valley and Wall Street by storm last year, has previously turned down multiple funding offers from China’s top venture capital firms and tech giants.
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