DeepSeek Nears $45B Valuation With Chinese State Chip Fund Leading Round
BEIJING — Chinese artificial intelligence startup DeepSeek is close to completing a funding round that would value the company at roughly $45 billion, with China’s state-backed semiconductor fund leading the investment, according to The Decoder, citing the Financial Times.
The deal, if completed, would position DeepSeek among the most valuable AI startups in the world, placing it in the same tier as leading Western competitors and underscoring the rapid acceleration of China’s AI ambitions despite ongoing US export restrictions on advanced chips.
The involvement of China’s state chip fund — the government-backed vehicle designed to bolster the country’s domestic semiconductor industry — signals Beijing’s strategic commitment to building homegrown AI capabilities independent of American technology, according to the report.
The valuation would represent a sharp increase for DeepSeek, which has drawn global attention for producing competitive large language models while operating under the constraints of US semiconductor export controls. The lab’s ability to achieve strong benchmark performance with reportedly fewer computational resources has prompted renewed debate over the effectiveness of Washington’s chip restrictions.
US Implications
DeepSeek’s rise carries implications for the US AI industry and national security policy. The company’s growing valuation and state backing intensify competitive pressure on American AI leaders including OpenAI, Anthropic and Google DeepMind, all of which have raised or are seeking billions in new capital.
OpenAI, currently the most valuable AI startup globally, closed a $40 billion funding round in early 2025 at a $300 billion valuation. Anthropic has been valued at $61.5 billion following its latest round. While DeepSeek’s $45 billion valuation remains below those figures, the pace of its ascent — fueled by direct state investment — has drawn concern among US policymakers.
The deal may draw scrutiny from US lawmakers who have pushed for tighter export controls and broader restrictions on Chinese AI development. The participation of a state-backed semiconductor fund could further complicate the geopolitical landscape around AI competition, as Washington weighs additional measures to limit Beijing’s access to advanced computing hardware.
Members of Congress on both sides of the aisle have cited DeepSeek’s progress as evidence that current export control frameworks may need strengthening, while industry representatives have cautioned that overly restrictive policies could hamper American competitiveness without meaningfully slowing Chinese AI advancement.
Terms of the funding round, including the identities of other participating investors, were not immediately disclosed.
