Chinese tech giants Tencent Holdings and Alibaba Group 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.

Full report : DeepSeek is fundraising to keep its researchers, some of whom have left for rivals whose valuations have soared; it is targeting a $20 billion valuation.