DeepSeek Bets Big on AGI Over Quick Profits in $45B Funding Push

DeepSeek, a Chinese AI firm based in Hangzhou, is steering away from the typical rush to monetize. Instead, it's doubling down on research for artificial general intelligence (AGI), which means it's focusing on building AI that mirrors human cognitive abilities rather than chasing quick commercial wins.

The company is currently in talks to secure roughly 70 billion yuan, or about $10 billion, a funding round that could value it near $45 billion. This would rank among the biggest first-time fundraisings ever seen from a tech startup in China.

Founder Liang Wenfeng signaled to potential backers that DeepSeek plans to keep developing open-source AI models, emphasizing transparency and collaborative progress in the AI community, while pushing aggressively toward AGI ambitions.

The investment interest appears robust, with big names on the list including the state-run National Artificial Intelligence Industry Investment Fund and major private firms like Tencent, IDG Capital, and Monolith Capital.

DeepSeek made waves in 2025 when it released a budget-friendly AI model that caught the attention of the global AI scene. Some consider this move a direct challenge to American heavyweights, including OpenAI.

Negotiations are ongoing, and the exact numbers and investor roster could shift as the process unfolds, keeping this story dynamic and worth watching as it develops.

Choosing to prioritize long-term research over near-term commercialization might delay profits, but it positions DeepSeek as a player setting sights on the transformative potential of truly autonomous, general-purpose AI systems rather than incremental advances.

This approach breeds questions about the patience of investors and the pace at which AI breakthroughs will translate into marketable products-or if the quest for AGI is too big to slot neatly into traditional startup timelines.