DeepSeek began preliminary talks with investors for a new funding round at a pre-money valuation of approximately $71 billion, just one month after completing its first financing round at a $52 billion valuation. This rapid valuation increase highlights the intense investor interest in AI startups and signals DeepSeek's growing market influence. Additionally, its reported plan to develop proprietary AI chips could reduce dependency on Nvidia and Huawei, impacting the semiconductor supply chain. DeepSeek had just raised approximately $7 billion in its first round at a $52 billion valuation in late May. According to a Reuters report, the company is also developing its own AI chips to lessen reliance on Nvidia and Huawei.
Background
DeepSeek is a Chinese AI startup that has quickly gained prominence in the industry. The company's first financing round was one of the largest in the AI sector, reflecting strong belief in its technology and business model. Developing in-house AI chips is a strategic move to secure supply and differentiate from competitors.