DeepSeek’s $45bn Valuation: A Strategic Shift
China’s Big Fund is now leading DeepSeek’s round, with a reported valuation of $45bn, up from a previous figure of $10bn just two weeks ago. This shift highlights a significant change in strategic logic.
What started as a $300m raise at a $10bn valuation in mid-April, involving Alibaba and Tencent, has evolved into an FT-reported deal led by the China Integrated Circuit Industry Investment Fund (aka "Big Fund").
The Big Fund, Beijing’s state-backed semiconductor investment vehicle, has traditionally focused on chip design, fabrication, packaging, and equipment. This potential investment in DeepSeek, a frontier AI model lab, represents an expansion of its mandate.
This development underscores Beijing’s decision regarding the symbiotic relationship between AI capability and chip capability. The US has employed semiconductor export controls to limit China’s access to leading-edge AI compute power; in response, China is now prioritizing financing model labs capable of achieving frontier results without relying solely on foreign hardware.
DeepSeek’s Journey:
Founded in July 2023 by Liang Wenfeng, a computer scientist and co-founder of High-Flyer Capital Management, DeepSeek operated entirely off High-Flyer’s balance sheet until April 2026. The decision to raise funds now appears to be twofold:
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Operational: DeepSeek may require additional resources for future growth and development.
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Strategic: Positioning itself at the forefront of AI innovation, independent of chip hardware limitations.