DeepSeek closes in on $7.4 billion funding round at $52 billion valuation

DeepSeek, a Chinese AI startup, is closing in on a $7.4 billion funding round at around a $52 billion valuation in its maiden fundraise. Tencent, CATL, and a state-backed AI investment fund are reportedly among the investors.

The startup recently made a 75% discount on its flagship AI model permanent, positioning itself as a lower-cost alternative to Silicon Valley's frontier labs.

More US firms are making direct payments to DeepSeek, according to a corporate spending tracker, as Chinese startups increasingly compete with Silicon Valley using cheaper costs as their main selling point.