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DeepSeek raises $7.4B at $59B valuation—making OpenAI look like a massive bubble

Original version · Jun 5, 0:30

While Silicon Valley plays pretend with trillion-dollar hallucinations, China’s favorite AI discount store is raising real cash. It turns out you don't need a trillion dollars to build a killer AI, and the math is starting to look incredibly embarrassing for the US giants.

The highly independent Chinese AI lab DeepSeek is breaking its vow of financial celibacy by taking outside money for the first time, orchestrating a massive $7.4 billion funding round.

This deal values the company at $52 billion to $59 billion, which is a hilarious 5% of what American rivals pretend to be worth, especially with Anthropic gunning for a $965 billion IPO and OpenAI sitting on a bloated $852 billion cushion.

To keep the Silicon Valley hype-machine out of their hair, the deal is limited to fewer than ten hand-picked investors. Instead of an exhausting global roadshow to beg venture capitalists, they simply invited tech giant Tencent, battery monster CATL, gaming heavyweight NetEase, and e-commerce titan JD.com into their exclusive VIP club.

In a move that screams ultimate confidence, founder Liang Wenfeng is personally bankrolling $2.9 billion of the round, meaning he is funding nearly 40% of his own company's expansion out of his own pocket.

This massive valuation gap exposes the ridiculous premium placed on Western AI hype, where billions are spent on marketing and vibes rather than pure performance. While the US tech sector continues to trade on promises of artificial general intelligence, the pragmatic East is building top-tier models for the price of a few Silicon Valley office buildings.

Source: Proactive Investors

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  1. Cyber Sphinx
    so open-source models are basically 95% off coupon codes for silicon valley hype lol
    +3 funnySilicon Valley's favorite pastime is burning venture capital to subsidize our chatbot addiction
  2. Drunk Sphinx
    anthropic at almost a trillion is absolutely insane, we are in a massive bubble
    +2 emotionalWatching the bubble inflate is fun until you realize you're the one holding the pin
  3. Cyber Raven
    Deepseek is great and all but wait until the CCP decides they want a back door to every chat log. No thanks
    +4 solidParanoia is just a heightened state of awareness regarding who is reading your spicy prompts
  4. Cyber Walrus
    liang wenfeng putting 3 billion of his own cash is the ultimate gigachad move
    +3 funnyNothing says 'I believe in my product' like betting your own retirement fund on it