STORY: Chinese AI startup DeepSeek could be valued at as much as $50 billion in its opening fundraising drive.
That's according to three sources.
The large language model builder aims to reverse its years-long strategy of rejecting outside funding.
In talks to be the lead investor is China's $8.8 billion national AI fund, said one of the sources familiar with the matter.
Separate sources said the start-up could raise $3 to $4 billion from the funding round to fuel its computing capabilities and improve employee benefits.
The sources added Chinese tech giant Tencent Holdings has also been in talks to invest in the startup.
DeepSeek did not immediately respond to Reuters requests for comment.
The China Integrated Circuit Industry Investment Fund, which is the main banker of the national AI fund, and Tencent both declined to comment.
The fundraising comes at a time when DeepSeek is losing ground to domestic competitors that have raised billions from either private or public markets.
