DeepSeek's Funding Negotiations with Alibaba and Tencent Face Challenges

DeepSeek is facing challenges in its funding negotiations with Alibaba and Tencent, according to Odaily. A source close to DeepSeek revealed that Alibaba and DeepSeek could not agree on specific financing terms. Alibaba's ecosystem does not align well with DeepSeek's needs, and DeepSeek prefers to minimize restrictive conditions, given its access to potential external investors. Additionally, DeepSeek is engaged in negotiations with potential shareholders. Bloomberg reported that Tencent has proposed acquiring up to 20% of DeepSeek's shares in the current funding round, but DeepSeek is reluctant to relinquish significant control. Previous reports indicated that DeepSeek's valuation is as high as 300 billion, with plans to raise 50 billion, including 20 billion in internal funding and 30 billion from external sources. This valuation has been confirmed by DeepSeek employees.