China's state-backed chip fund is in talks to lead DeepSeek's first funding round at $45 billion

Serving as the primary backer of China's national AI fund — a vehicle with 60 billion yuan ($8.8 billion) in capital — the China Integrated Circuit Industry Investment Fund has emerged as a potential lead investor in the round, Reuters reported. The Financial Times first reported the talks, citing the $45 billion valuation figure.

Proceeds from the fundraising, estimated at $3 billion to $4 billion, would go toward building out DeepSeek's computing infrastructure and boosting pay for its staff, Reuters reported. Tencent is among the other parties that have held investment discussions with the startup. None of the three companies — DeepSeek, Tencent, or the China Integrated Circuit Industry Investment Fund — provided a statement when approached for comment.

The fundraising would mark a reversal for DeepSeek, which had long rebuffed approaches from venture capital firms and major technology companies seeking to invest. An earlier report had pegged the potential raise at at least $300 million at a $10 billion valuation.

DeepSeek drew global attention in early 2025 after its low-cost AI models briefly matched the performance of leading U.S. systems, rattling stock markets. As of March 2026, the gap between the top U.S. model and its strongest Chinese competitor had narrowed to 2.7 percentage points, according to Stanford University's annual AI Index report. The fundraising reflects a broader dynamic in the AI industry, where developing and maintaining advanced models demands substantial and growing financial resources.