July 14 (Reuters) – Chinese AI startup DeepSeek is weighing raising new funds one month after closing its first round and has begun preparations for an initial public offering, according to media reports on Tuesday.
The company started preliminary talks this week with new investors about opening another round that would value the company at about $71 billion before the deal, according to the Financial Times.
DeepSeek did not immediately respond to a request for comment.
Bloomberg News also reported that the company has begun talks with new backers about a fresh round. DeepSeek may also file for an initial public offering as soon as this year, according to the report.
DeepSeek, China’s best-known AI startup, completed its first-ever round of financing around the end of May, which raised about $7 billion at a valuation of $52 billion, including the raised funds, the FT added.
The startup became China’s national AI champion and garnered global fame early last year, when its V3 and R1 models drew widespread praise in Silicon Valley and challenged U.S. assumptions about China’s AI capabilities.
Reuters earlier this month reported DeepSeek is developing its own AI chip, a push that could reduce its reliance on Nvidia and Huawei chips, which it has depended on to train and run its globally popular models.
(Reporting by Hyunsu Yim in Barcelona; Editing by Sharon Singleton)
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