Update: Financial Times reports that Xiaomi has lined up $1.5 billion in venture funding as part of a valuation that could exceed $40 billion. Russian internet company DST, which also backed companies like Alibaba, Facebook and Airbnb, is one of the investors currently in negotiations with the Chinese handset maker.

Bloomberg on Tuesday, citing sources familiar with the matter, reports that Chinese smartphone maker Xiaomi is in talks to hold a funding round that could value the smartphone maker at between $40 billion to $50 billion. The news arrives just days after it was reported that Xiaomi overtook LG to become the world’s third-largest smartphone maker. expand full story