MoneyApril 22, 2026via The Information
Tencent, Alibaba in Talks to Invest in DeepSeek at $20 Billion-Plus Valuation
Why it matters
DeepSeek's valuation has doubled in weeks amid fierce competition from Chinese tech giants, signaling a major shift in capital allocation toward homegrown AI challengers competing with US models like ChatGPT.
Key signals
- DeepSeek seeking $20B+ valuation (up from $10B target reported days prior)
- Tencent and Alibaba in active investment talks
- First external fundraising round for DeepSeek
- Initial target: $300M minimum at $10B+ valuation
- DeepSeek owned by High-Flyer Capital Management
- Rapid investor interest driving valuation increase
The hook
$20B+. That's DeepSeek's new valuation as Tencent and Alibaba race to invest in China's hottest AI startup.
Chinese tech giants Tencent Holdings and Alibaba Group are in talks to invest in DeepSeek, the AI upstart that recently started fundraising for the first time, according to four people with knowledge of the conversations.
DeepSeek, owned by Chinese hedge fund High-Flyer Capital Management, is now se…