WSJ Tech News Briefing
TNB Tech Minute: China’s DeepSeek Set to Reach $74 Billion Valuation
· Summarized
Key takeaways
- DeepSeek is nearing a major funding milestone, valuing the company at $74 billion, indicating strong investor confidence in Chinese AI startups.
- South Korea is actively investing in its AI infrastructure, aiming to develop a self-sufficient AI ecosystem with new data center projects supported by global investment firms.
- Barrett Zoff's return to Google highlights the importance of experienced leadership in AI research, especially during times of organizational change.
- The podcast emphasizes the growing global competition and investment in AI technology, with key players in China, South Korea, and the US contributing to rapid advancements.
Summary
DeepSeek's Upcoming Funding and Valuation
DeepSeek, a Chinese AI startup, is preparing to raise $7.4 billion in new funding, which would significantly increase its valuation to $74 billion, up from $50 billion in June. The fresh capital aims to support research, development, and the expansion of its computing infrastructure. The funding round includes existing shareholders like Monolith Management and Chinese Battery Giant Contemporary Ampric Technology, along with several Chinese government-backed funds, signaling strong backing and confidence in DeepSeek's growth trajectory.
South Korea's AI Infrastructure Expansion
South Korea is making strategic moves to establish a robust AI ecosystem by forming SK Horizon, a new company created from spinoffs of SK Telecom's data center and submarine cable businesses. Backed by KKR and South Korean firms, this initiative aims to increase data center capacity and achieve AI sovereignty. It's part of a broader national effort to foster an advanced AI infrastructure within the country, enhancing both technological independence and capabilities.
Leadership Moves in AI: Barrett Zoff Joins Google
Barrett Zoff, co-founder and former CTO of Thinking Machines Lab, is returning to Google as Vice President of Research, with a focus on reinforcement learning and post-training methods for Google's Gemini AI platform. His career includes stints at Google, OpenAI, and his own startup. His rejoining Google comes amid significant restructuring within the company’s AI research division, following the departure of high-profile researchers. Zoff's role underscores Google's ongoing commitment to strengthening its AI research and development efforts.
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Show notes
Plus: SK Telecom is creating an AI data-center company backed by KKR. And Thinking Machines Lab co-founder Barret Zoph rejoins Google. Imani Moise hosts.
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
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