Chinese tech giants Tencent Holdings and Alibaba Group are reportedly in discussions to invest in artificial intelligence startup DeepSeek, as competition in the AI sector continues to intensify.
According to a report by The Information, which cited multiple sources familiar with the matter, DeepSeek is aiming to secure new funding at a valuation exceeding $20 billion. The company has attracted strong interest from potential investors, highlighting growing confidence in next-generation AI technologies.
DeepSeek is backed by High-Flyer Capital Management, and this marks one of its first major efforts to raise external capital. Earlier reports suggested the startup was targeting at least $300 million in funding at a valuation of around $10 billion, indicating how quickly investor expectations may be rising.
Neither Tencent, Alibaba, nor DeepSeek have publicly commented on the ongoing discussions, and the details of the deal have not been independently confirmed.
If finalized, the investment would reflect the increasing financial demands associated with building and scaling advanced AI systems. As companies race to develop more powerful models—especially those capable of reasoning and autonomous decision-making—the need for substantial capital continues to grow.
Sources indicate that negotiations are still ongoing, and both the final valuation and funding size could change before any agreement is reached.
