DeepSeek Seeks $7.4 Billion More at $74 Billion Valuation as AI Costs Outgrow High-Flyer
Updated
Updated · CNBC · Aug 28
DeepSeek Seeks $7.4 Billion More at $74 Billion Valuation as AI Costs Outgrow High-Flyer
3 articles · Updated · CNBC · Aug 28
Summary
$7.4 billion is the target for DeepSeek’s second funding round, which the Wall Street Journal said could close by the end of August and value the Chinese AI lab at $74 billion.
50 billion yuan from its first round already equaled more than 60% of founder Liang Wenfeng’s High-Flyer quant fund assets, underscoring why DeepSeek can no longer rely mainly on its original backer for capital and computing power.
High-Flyer has instead been harvesting China’s domestic tech-IPO boom, taking pre-IPO stakes including $26 million in memory-chip maker CXMT and $5.8 million in robot maker Unitree through affiliated funds.
Those bets brought windfalls but also volatility: CXMT jumped more than fivefold on its July debut, while Unitree surged 460% on listing before sliding about 27%, highlighting Beijing’s challenge in backing strategic sectors without fueling speculation.
Beijing’s support for AI, chips and robotics has also improved DeepSeek’s access to investors and marquee listings, while investors are betting a future mainland IPO could help the company retain talent and finance its rising compute needs.