DeepSeek, a Chinese AI startup, is in talks to raise at least $300 million, with a target valuation around $10 billion, according to The Information citing two people familiar with the matter.

Regulatory and geopolitical tensions could shape funding dynamics and participation from foreign investors.

DeepSeek has had tensions with U.S. chipmakers, reportedly avoiding showing its flagship model to U.S. companies and training a newer model on Nvidia chips despite export restrictions.

To date, DeepSeek has been funded exclusively by its parent, High-Flyer Capital Management.

Reuters has not independently verified The Information’s report, and DeepSeek did not respond to requests for comment.

The company previously rebuffed multiple funding offers from major Chinese venture capital firms and tech giants, signaling a selective approach to investors.

The fundraising would underscore the high capital needs for developing and operating advanced AI models with stronger reasoning and agentic capabilities, accelerating development and competitiveness.

Beijing’s policy push to reduce dependence on foreign chips adds pressure on DeepSeek and similar firms to pursue domestic semiconductor alternatives.

DeepSeek’s AI model, R1, attracted attention from Silicon Valley and Wall Street last year.

The company has begun discussions with investors about external funding.

DeepSeek is seeking its first external funding round, targeting at least $300 million.

Some U.S. venture capitalists may hesitate to invest due to the company’s Chinese origin and broader geopolitical and regulatory considerations.