DeepSeek doubles latest round amid soaring black‑market Nvidia Blackwell chip prices; Chinese state investors hold 27%
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| Source: Techmeme | Original article
DeepSeek has doubled the size of its latest funding round, now approaching $16 billion, as black‑market Nvidia Blackwell chip prices surge and Chinese state‑owned investors hold 27%.
DeepSeek, the Chinese AI startup that has become a poster child for the nation’s push into large‑language models, has reportedly doubled the size of its latest fundraising round after black‑market prices for Nvidia’s new Blackwell GPUs spiked. Sources say the round now totals close to $16 billion, with state‑owned investors contributing roughly 27 percent of the capital.
The surge in Blackwell chip prices on the secondary market forced DeepSeek to secure additional cash to cover hardware costs that are essential for training its next‑generation models. By expanding the round, the company can lock in GPU allocations before supply tightens further, a tactic that underscores how semiconductor scarcity is reshaping AI financing.
The involvement of Chinese state‑owned entities at a quarter of the total raise signals a deepening of strategic industrial policy in the AI sector. It blurs the line between private venture capital and government‑backed funding, suggesting that future AI projects may increasingly be evaluated through a geopolitical lens as much as a commercial one.
Observers will watch how DeepSeek deploys the new funds—whether it will double down on Nvidia hardware, diversify into alternative architectures, or invest in in‑house chip design. Nvidia’s ability to meet demand and the evolution of the black‑market pricing mechanism will also be closely monitored, as they could dictate the pace of AI development across the region. Finally, the scale of state participation may prompt regulators to scrutinise the balance between market competition and national strategic interests in China’s rapidly expanding AI ecosystem.
Sources
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