Liang Wenfeng is the most elusive person in the Chinese manufacturing industry. artificial intelligence (AI). The founder of DeepSeekwho also runs the hedge fund High-Flyer, recently held a four-hour video call with potential investors from Hangzhou, China, an unusual format in every sense: only two representatives per institution, and for most of the attendees it was the first time they had seen the founder. “We are a very normal group of people,” Wenfeng told them.
And this apparent simplicity hides the company that, in just over a year, has rewritten the economic rules of generative AI. However, what began as a start-up reluctant to any outside investment has come full circle. DeepSeek recently closed a financing round of around $7 billion, with a valuation of $52 billion.
The most revealing data, however, is provided by SCMP: This company is already negotiating a second round that is expected to raise that figure to $71 billion just weeks after closing the first.
The power map of Chinese AI
Reuters has confirmed that DeepSeek develops its own ASIC chip aimed at inference and not training. With it, it aims to reduce its dependence on Nvidia and Huawei, its two current suppliers. If the project succeeds, it would mark a huge strategic shift for a company that until now has built its entire reputation on software efficiency rather than hardware control. Be that as it may, this move would add additional pressure to Huawei, which competes for the same space within China.
Huawei now integrates DeepSeek into its cloud services in sub-Saharan Africa
In this scenario we are interested in focusing on the real magnitude of this phenomenon. According to FortuneChinese open source models (led by Qwen, MiniMax and DeepSeek) already represent a third of global use of large language models, compared to an almost non-existent presence at the end of 2024. Emerging companies in Silicon Valley and Southeast Asia adopt them due to their openness, transparency and a much lower operating cost than American alternatives.
Huawei, in fact, already integrates DeepSeek into its cloud services in sub-Saharan Africa. As expected after such an escalation in valuation, several sources suggest that DeepSeek could present its IPO this year, following in the wake of other low-cost Chinese startups such as Zhipu AI and MiniMax, which are already listed on public markets.
A successful placement would give DeepSeek the institutional capital necessary to scale its computing infrastructure and sustain its long-term price war against large American players. DeepSeek is no longer just the startup that sparked Nvidia’s biggest stock scare in a single day: it is the battering ram with which China tries impose its open and cheap AI model as a global standard.
Image | Generated by Xataka with ChatGPT
More information | Bloomberg
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