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Deepseek and Core Automation: Chinese AI Attracts Billions

💼 Business & Startups·Tom Levy·

Deepseek and Core Automation: Chinese AI Attracts Billions

Deepseek and Core Automation: Chinese AI Attracts Billions
Key Takeaways
1Deepseek plans to raise up to $7.35 billion, a record for a Chinese AI company.
2Deepseek's founder, Liang Wenfeng, may personally invest 40% of this amount.
3Core Automation, founded by Jerry Tworek, aims for a valuation of $4 billion after just six weeks of existence.
💡Why it mattersThese massive fundraising efforts illustrate the growing appeal of AI technologies, despite challenges in profitability and talent retention.
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Full Analysis

Deepseek: A Historic Fundraising Round in Preparation

Investments in the artificial intelligence sector continue to intensify, particularly in China. The Chinese AI lab Deepseek is planning a colossal fundraising round that could reach 50 billion yuan, approximately 7.35 billion dollars. This amount would represent the largest funding ever raised for a Chinese AI company. Deepseek's founder, Liang Wenfeng, intends to contribute personally up to 40% of this sum. This operation could propel the company's valuation beyond 51.5 billion dollars.

Deepseek is not only focused on raising funds but is also ramping up its commercialization efforts. The company plans to launch DeepSeek V4.1 in June, a version that will offer new tools for businesses, improved support for the MCP, as well as advanced image and audio processing features. However, concerns have been raised by investors regarding Deepseek's lack of revenue and the loss of key researchers to giants like Xiaomi and ByteDance.

Core Automation: A Rapid Ascent

In another corner of the AI world, Core Automation is experiencing explosive growth. Founded by Jerry Tworek, a former researcher at OpenAI, just six weeks ago, the startup is already aiming for a valuation of around 4 billion dollars. This ambition comes after raising 100 million dollars at an initial valuation of 1 billion dollars. Among Core Automation's investors is Nvidia, a major player in the tech industry.

Core Automation stands out for developing AI models capable of continuing to learn after their initial training, an advancement that could transform the landscape of artificial intelligence.

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