On February 8, a wave of excitement reverberated through the tech world as the spotlight shifted to AI financing, driven by the burgeoning interest in DeepSeekThe rumblings of a potential funding surge hinted at an imminent explosion in the market for large AI modelsSpeculation abounded after reports emerged suggesting that DeepSeek, a rising star in the AI landscape, allegedly secured a staggering $1 billion investment from Alibaba, subsequently elevating its valuation to a whopping $10 billionHowever, Alibaba quickly refuted those claims later that evening, underscoring the speculative nature of the newsEarlier, Zhu Xiaohu, managing partner at GSR Ventures, stated in an interview that he would undoubtedly invest if DeepSeek opened its doors for fundingThis moment underscores a pivotal shift in the landscape of AI funding, where interest and capital are surging like never before.

Despite the inaccuracy surrounding DeepSeek's rumored funding, the trend of financing large AI models is unmistakably realJust in recent days, several prominent international AI firms have disclosed various funding rounds:

Safe Superintelligence Inc. (SSI) has emerged from its stealth phase with news that it will soon be valued over $20 billion following recent funding developmentsFounded last year by Ilya Sutskever, a former chief scientist at OpenAI, SSI has yet to generate any revenue, yet analysts are eagerly anticipating its potentialTo add to the intrigue, OpenAI is preparing to close a monumental increase in its funding, projected to value the firm at an astonishing $300 billionAdditionally, Anthropic, another major player in the space, is actively pursuing over $2 billion in new funding and is poised to reach a valuation exceeding $60 billion.

Meanwhile, traditional tech giants such as Microsoft, Google, Meta, and Amazon are ramping up their AI capital expenditures, with anticipated spending exceeding $315 billion this year aloneThis shift signifies that AI investment is not just a trend among startups but a crucial part of the growth strategy for these influential companies.

Turning our gaze back to SSI, founded in June 2022, it has quickly garnered substantial investor attention

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In September of the same year, the company raised $1 billion from notable backers such as Andreessen Horowitz, Sequoia Capital, DST Global, and SV Angel, leading to a valuation of $5 billionThe nature of SSI's mission—to develop "safe superintelligence" that surpasses human intelligence while ensuring safety and human alignment—sets it apartDespite having no revenue yet, SSI is focused on long-term developmental milestones, distancing itself from the commercialization pressures that have overrun many AI ventures, especially OpenAI, which pivoted its focus towards monetization following its explosive growth in 2022.

Moving on to OpenAI, reports from late January indicated that SoftBank is leading a monumental $40 billion funding round for the company, which may mark a record high for private equity financing in a single roundWith a pre-funding valuation of $260 billion, a successful round will catapult OpenAI's worth to $300 billionInitial expectations for the funding round were set at $340 billion, but recent information has realigned those figures.

What’s particularly noteworthy is OpenAI’s strategy to restructure its operations following this funding infusionThe company intends to shift from its non-profit origins and manage the ongoing implications of scaling its business to decouple itself from previous constraintsA significant portion of the newfound capital is expected to fuel the ambitious "Stargate" initiative—a joint venture with SoftBank and Oracle, aimed at bolstering the AI infrastructure landscape of America, with initial investments projected at $100 billion, eventually aiming towards $500 billion over the next four years.

Anthropic is another noteworthy player reflecting this investment momentum; reports indicate its recent funding round has seen overwhelming interestAlready having secured a financial boost from Amazon amounting to $4 billion, Anthropic is now positioned to surpass a valuation of $60 billion, a remarkable jump from just $18 billion a few months ago

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