China’s AI darling, DeepSeek, is reportedly preparing to raise around RMB 50 billion (US$7.4 billion) in its first-ever external funding round – a move that could value the company at up to RMB 400 billion (US$59 billion).
The round is expected to attract a who’s who of Chinese industry: Tech giant Tencent is reportedly considering an RMB 10 billion investment (about US $1.4 billion). Battery maker CATL could contribute RMB 5 billion (about US$700 million). Other investors said to be involved include JD.com, NetEase, and China’s national AI fund.
Since DeepSeek’s founding, the company has largely avoided outside capital. That’s in large part thanks to the backing of founder Liang Wenfeng and his quantitative hedge fund, High-Flyer. Reports have it that Liang himself will contribute a handsome RMB 20 billion (about US $2.8 billion) to the round.
DeepSeek shot to international fame in early 2025 after its open-source V3 and R1 models wowed developers worldwide and challenged assumptions about China’s ability to compete in advanced AI. But the market has moved quickly. The industry’s focus is shifting away from chatbots. AI agents are said to be the thing of the future. These agents will be capable of performing complex tasks autonomously, but that requires a jump in computing resources.
The funding round displays DeepSeek’s ambitions and China’s broader AI strategy. The mix of investors is worth noting. They span software, e-commerce, energy infrastructure and state-backed capital – the latter highlighting Beijing’s push to build a self-sufficient AI ecosystem. And with US export controls limiting Chinese access to advanced chips, that need is paramount
Here’s something else to note: If completed, this deal would rank among the largest private tech fundraisings in Chinese history. That level of funding would certainly give DeepSeek substantial firepower for the next phase of the global AI race.
