Deep Sec’s value could reach $50 billion in its first financing round

Three sources said that the value of the Chinese startup company (DeepSec) in the field of artificial intelligence may reach $50 billion in its first financing round, at a time when the company specializing in developing large language models seeks to change its years-long strategy, which was based on rejecting external funding.

One of the informed sources said that China’s 60 billion yuan ($8.8 billion) National Artificial Intelligence Fund, which was established last January, is in talks to be the main investor in DeepSeek’s fundraising campaign.

Other sources familiar with the matter said that the startup may raise between three and four billion dollars from a financing round to enhance capabilities related to computer work and improve employee benefits.

The sources, all of whom refused to reveal their identities due to the confidentiality of the information, explained that Tencent, the Chinese technology giant, is also in talks to invest in Deep Sec.

Deep Sec did not immediately respond to requests for comment from Reuters.

The China Integrated Circuit Industry Investment Fund, the main financier of the National Artificial Intelligence Fund, declined to comment. Tencent also declined to comment.

The Financial Times was the first to report on Wednesday, citing sources, that the China Integrated Circuit Industry Investment Fund is in talks to lead the first fundraising round for DeepSEC, which could value the leading artificial intelligence company at about $45 billion.