DeepSeek Plans Record $7.35B Raise as AI Startup Valuations Soar
DeepSeek, the Chinese AI lab, is planning a funding round of up to $7.35 billion, which would be the largest raise ever for a Chinese AI company, according to The Decoder. The company is also preparing to launch DeepSeek V4.1 in June.
Core Automation, a U.S.-based startup founded six weeks ago by former OpenAI researcher Jerry Tworek, is targeting a $4 billion valuation, according to the same report. The company has quadrupled its valuation in a matter of weeks.
The two fundraising efforts reflect divergent but parallel tracks in the global AI race. DeepSeek’s round, if completed at the reported figure, would bolster China’s position in frontier AI development at a time when U.S. policymakers are tightening export controls on advanced chips and AI technology. The company’s open-weight models have demonstrated competitive performance against leading U.S. systems at a fraction of the reported training cost.
Core Automation’s trajectory follows a pattern in the current AI investment cycle: researchers departing major labs to launch startups that attract high valuations before shipping commercial products. Tworek’s background at OpenAI, where he worked on research initiatives, has drawn substantial investor interest in the company’s agentic AI ambitions.
The funding activity comes amid a broader surge in AI-related capital deployment. Venture capital firms and sovereign wealth funds have invested tens of billions into AI companies in 2025 and 2026, driven by expectations that large language models and autonomous AI agents will reshape industries from software development to healthcare.
A $7.35 billion infusion would give DeepSeek resources comparable to those of well-funded American competitors, potentially accelerating the development of models that have drawn attention in the West.
Neither DeepSeek nor Core Automation has publicly confirmed the reported funding figures.
