Summary Chinese AI startup DeepSeek previews its V4 model, seeks $300M funding at $10B+ valuation, with Tencent and Alibaba in talks to invest, highlighting rising AI development costs
BEIJING (Reuters) - Chinese AI startup DeepSeek started previewing a major upgrade for its hit artificial intelligence model on Friday.
The new model, V4, will include pro and flash versions and succeed the V3 model released in December 2024, the company said on its WeChat channel.
Earlier this week, Chinese tech giants Tencent Holdings (0700.HK) and Alibaba Group (9988.HK) are in discussions to invest in artificial intelligence startup DeepSeek, The Information reported on Wednesday, citing four people with knowledge of the talks.
Owned by Chinese hedge fund High-Flyer Capital Management, DeepSeek is now aiming to raise funding at a valuation exceeding $20 billion, as its initial discussions with prospective investors sparked immense interest, the report said, citing one of the people.
Alibaba, Tencent and DeepSeek did not immediately respond to requests for comment. Reuters could not independently verify the report.
U.S.-listed shares of Alibaba rose 1.3% in premarket trading.
The Information reported on Friday that DeepSeek started discussions to raise outside capital for the first time, with a target to raise at least $300 million at a valuation of at least $10 billion.
This potential fundraise underscores the intense capital required to develop and operate cutting-edge AI models, especially with the growing complexity of advanced reasoning and autonomous agentic bots.
