DeepSeek reportedly in talks to raise $1.5B, then IPO

Chinese large language model developer DeepSeek is reportedly in discussions to raise approximately $1.5 billion in new funding, with a potential valuation of around $71 billion. The company is also said to be preparing for an initial public offering (IPO) in 2027.

This news follows a recent funding round completed just last month, where DeepSeek secured over $7 billion at a valuation of roughly $50 billion. Founded in 2023, the company gained significant attention for its efficient and cost-effective AI models. In June, DeepSeek's models accounted for nearly 23% of tokens processed through the enterprise-focused AI gateway Vercel.

DeepSeek's open-source models have demonstrated performance comparable to leading US AI labs, even amidst US export controls on chip technology. The company's cloud services utilize chips manufactured by the Chinese firm Huawei Technologies. Investors reportedly include Tencent and Beijing's National Artificial Intelligence Industry Investment Fund.

DeepSeek could not be reached for comment.