The gunfire broke out shortly after 4 p.m. near Valerio Street and Tujunga Avenue in North Hollywood.
Two people were hit when officers arrived, according to the Los Angeles Police Department. Both died, one at a hospital Thursday evening.
The suspect in the shooting fled in a vehicle as LAPD cruisers followed him onto the southbound 170 Freeway in a high-speed chase that ended when the man exited at the Burbank Boulevard offramp.
"Officers surrounded the vehicle and were ordering the suspect out of the vehicle when an officer-involved shooting occurred," LAPD Det. Gus Villanueva told The Times.
The LAPD said the man confronted officers with an object, possibly a gun, and that at least seven officers opened fire.
Police initially reported that a second suspect in the vehicle was wounded by officers, but the LAPD said Thursday evening that only one person was in the car.
Homicide detectives were gathering evidence as they tried to determine what sparked the initial shooting.