Tencent and Alibaba are reportedly considering investments in DeepSeek, which is seeking a valuation exceeding $20 billion in its first fundraising round. Initially targeting a $10 billion valuation, the company has seen its valuation expectations double due to strong investor interest. DeepSeek, known for its independence from external capital, is shifting strategy to accommodate growing operational costs and infrastructure needs. DeepSeek's founder, Liang Wenfeng, previously funded the company through his hedge fund, High-Flyer, with a modest $5.6 million investment. The company's flagship model, DeepSeek-V3, is noted for its efficiency, delivering high performance with fewer resources. However, scaling the model for broader use has increased financial pressures, prompting the pursuit of external funding. The company faces challenges such as U.S. export restrictions on NVIDIA chips, which are integral to its architecture, and has begun exploring alternative chip ecosystems.