DeepSeek reportedly in talks to raise $1.5B, then IPO
Quick Answer
DeepSeek, a Chinese large language model developer, is seeking to raise $1.5 billion at a $71 billion valuation ahead of a potential IPO in 2027.
Quick Take
The company, which recently raised $7 billion, has gained significant market traction, processing nearly 23% of tokens on Vercel, showcasing competitive performance against U.S. models despite export controls.
Key Points
- DeepSeek aims for a $1.5 billion funding round at a $71 billion valuation.
- The company raised $7 billion last month at a $50 billion valuation.
- DeepSeek processed nearly 23% of tokens on Vercel, outperforming many competitors.
- The startup's cloud services utilize Huawei Technologies chips.
- Investors include Tencent and Beijing's National AI Industry Investment Fund.
📖 Reader Mode
~1 min readDeepSeek, the Chinese large language model developer, is preparing for a 2027 IPO debut, but it could come as early as the end of this year as it also looks to raise around $1.5 billion in new funds at about a $71 billion valuation, Bloomberg reports. The news comes after the company raised $7 billion in funds just a month ago at around a $50 billion valuation in its first-ever outside funding round.
The China-based startup, founded in 2023, made headlines early last year after releasing AI technology that was both more efficient and more cost-effective than U.S. model makers. It has since grown exponentially in popularity. In June, it accounted for nearly 23% of all the tens of trillions of tokens processed by enterprise-focused AI gateway Vercel, the company reports. This is compared to Anthropic taking 32% of tokens.
DeepSeek continues to show how Chinese open-source models perform within a few breaths of top U.S. AI Labs, despite U.S. export controls on chips. DeepSeek’s cloud service runs on chips made by the Chinese company Huawei Technologies. Investors in DeepSeek include Tencent and Beijing’s National Artificial Intelligence Industry Investment Fund, per Bloomberg.
Topics
— Originally published at techcrunch.com
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