DeepSeek eyes $3 billion funding round at $100 billion valuation

The Chinese AI startup that shook up the industry with its low-cost models last year is now looking for serious cash. DeepSeek is reportedly in talks with investors to raise at least $3 billion at a staggering $100 billion valuation, according to a Friday report from The Information.

Two people familiar with the matter told the publication that the company, which previously turned down multiple funding offers from China's top venture capital firms and tech giants, is now actively seeking capital. This potential round highlights the enormous financial firepower needed to develop and run cutting-edge AI models, especially as the race for advanced reasoning and intelligent robotics heats up.

DeepSeek hasn't responded to Reuters' request for comment, and the news agency couldn't immediately verify the report.

There's a catch, though. As a Chinese company, some U.S. venture capitalists might hesitate to invest in DeepSeek, the report notes. Geopolitical tensions and regulatory scrutiny often make cross-border deals in sensitive tech sectors a complicated dance. (See: Google Chrome's AI Mode gets a split-screen view for smarter web searches)