Tencent and Alibaba are in talks to invest in DeepSeek at a $20B+ valuation, partly benchmarked against Moonshot's pending round at an $18B valuation

DeepSeek just became the hottest ticket in Chinese AI. Tencent and Alibaba are both in discussions to invest in the AI upstart, which recently kicked off fundraising at a valuation exceeding $20 billion, according to The Information.

The price tag is partly benchmarked against rival Moonshot, which has a pending round at an $18 billion valuation. DeepSeek clearing that bar signals where the market thinks it sits in the Chinese AI pecking order.

Having two of China's largest tech conglomerates compete to write checks is a strong signal. DeepSeek has rapidly emerged as a serious contender in the AI space, and this fundraise — if it closes — would cement its position among the most valuable AI startups globally.

No final terms have been disclosed. But at $20 billion-plus, DeepSeek is playing in rarefied air.