It is reported that two major tech companies are vying to invest in DeepSeek.

On April 22nd, according to media reports from The Information citing four people familiar with the matter, Tencent and Alibaba are in talks to invest in DeepSeek, which was reported to have initiated external financing for the first time just last week.

After initial discussions with potential investors, DeepSeek is seeking to raise funds at a valuation of over $20 billion (approximately RMB 136.49 billion). On April 17th, it was reported that DeepSeek aimed for a valuation of over $10 billion (approximately RMB 68.18 billion) and planned to raise at least $300 million (approximately RMB 2.05 billion).

People familiar with the matter said that the negotiations are still ongoing, and the valuation and financing amount may be adjusted. As DeepSeek operates more like an AI laboratory focusing on open - source technology rather than a for - profit enterprise, its valuation has sparked controversy in the domestic technology and venture capital circles recently.

DeepSeek's $20 - billion valuation partly refers to the Dark Side of the Moon, which developed the Kimi series of large models. According to a person familiar with the matter, the Dark Side of the Moon is about to complete a new round of financing, with a valuation of $18 billion (approximately RMB 122.84 billion).

Other data shows that DeepSeek's valuation may exceed $20 billion. When its competitors, MiniMax and Zhipu, went public in Hong Kong in January this year, their valuations were both less than $10 billion. Now, Zhipu's market value has reached HK$438.6 billion (approximately RMB 382.45 billion), and MiniMax's has reached HK$291.1 billion (approximately RMB 253.21 billion).

However, unlike them, DeepSeek has not generated significant revenue. The company has kept its models open - source and provides chatbots to consumers for free.

DeepSeek, Tencent, and Alibaba have not responded to requests for comment.

For years, DeepSeek has been controlled by Magic Square Quantitative Management, a Chinese hedge fund. Its founder, Liang Wenfeng, has insisted on independent operation and not accepting external funds. However, with the intensification of technological and competitive challenges, this stance is changing.

Now, DeepSeek is facing more intense market competition than a year ago. The development of AI models has accelerated, and the costs of training and operation have soared. Well - funded technology giants are posing greater challenges to startups. In recent months, some key researchers have switched to Chinese technology giants. New funds will provide DeepSeek with much - needed computing resources and support for talent retention.

This article is from the WeChat official account "Zhidongxi" (ID: zhidxcom). The author is Li Shuiqing, and the editor is Xinyuan. It is published by 36Kr with authorization.