DeepSeek Seeks Over $20B Valuation Funding to Clarify Option Value and Retain AI Researchers

DeepSeek is advancing a funding round with a potential valuation exceeding $20 billion. The core purpose is not urgent cash needs but to clarify the value of employee stock options to retain researchers. Previously, some key personnel left for competitors like ByteDance and Tencent, as options often make up a large part of compensation in the AI industry, and vague valuation put DeepSeek at a disadvantage in talent competition.

The funding size is expected to be only a few hundred million dollars, more symbolic. If negotiations fail, founder Liang Wenfeng considers alternatives like stock repurchases or performance-based valuation. Despite talent loss challenges, most employees still support his idealistic approach, and the company's flexible work environment and flat structure remain attractive.