China’s DeepSeek, the startup that shook the AI world with cheap, capable models, has restarted a funding round that had stalled, and it is aiming high. According to Bloomberg, the company is seeking close to 8 billion dollars at a valuation of about 74 billion, a figure that would place it among the most valuable AI startups anywhere. After a rough patch, DeepSeek is once again one of the hottest names in Chinese tech.
The round had paused last month after leaked remarks from DeepSeek’s founder to investors caused friction. Now it is back on, with Monolith Management, a backer of rival Moonshot, reported to be in talks to join. The existing group of investors reads like a roll call of Chinese capital, including the country’s national AI fund, NetEase, JD.com, IDG Capital, Loyal Valley, and Shixiang Capital. That lineup shows how much of China’s tech and state money is lining up behind the company.
The renewed enthusiasm follows a strong product run. DeepSeek recently released V4 Flash, a model praised for delivering a lot of capability for very little money, the same cost efficient formula that made the company famous when its earlier models rattled markets by matching pricier Western AI at a fraction of the cost. In a market where American labs are now cutting prices to compete, DeepSeek’s cheap and good reputation is a serious asset.
The company is also spending, not just raising. DeepSeek has taken a stake in Unitree, the Chinese maker of low cost humanoid and quadruped robots, a sign that it sees its AI reaching beyond chatbots and into physical machines. Pairing a strong, cheap model with cheap robot hardware is a distinctly Chinese bet on scale, and it hints at where DeepSeek thinks the next phase of AI value lies.
The raise lands in the middle of a global funding frenzy for AI, where record sums are pouring into the field. For China, a well funded DeepSeek is a point of national pride and a counter to the American giants, proof that its labs can compete at the frontier without matching Western spending dollar for dollar. Whether an 8 billion dollar fund turns that reputation into lasting leadership is the next thing to watch.
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