DeepSeek First Funding Round: Chinese AI Startup Targets $7.4 Billion Raise

TLDR

• Chinese AI startup DeepSeek is raising around 50 billion yuan ($7.4 billion) in its first funding round
• The round could value DeepSeek at between $52 billion and $59 billion post-investment
• Founder Liang Wenfeng is putting in 20 billion yuan of his own money
• Tencent and CATL are set to be the largest external investors
• The round is expected to close within the next couple of weeks

DeepSeek became China’s leading AI startup after its V3 and R1 models gained widespread attention in Silicon Valley in early 2025. The models challenged assumptions about China’s ability to compete with American AI companies.

Now the startup is raising money for the first time. Sources say it plans to raise about 50 billion yuan, or roughly $7.4 billion, from fewer than 10 investors.

The fundraising could value the company at between $52 billion and $59 billion after the investment closes.

Founder Liang Wenfeng is committing 20 billion yuan of his own money to the round. That makes him the single largest contributor.

Tencent is considering putting in 10 billion yuan. Battery maker CATL is looking at 5 billion yuan. Both would be the largest external investors if they follow through.

DeepSeek is also in final talks with China’s national AI fund, gaming company NetEase, and e-commerce firm JD.com. None of those companies responded to requests for comment. Tencent and CATL declined to comment.

Who’s Investing and Why

The investor lineup reflects China’s push to build a self-sufficient AI industry. It brings together tech firms, energy companies, and state-backed funds under one deal.

CATL is best known for making batteries for electric vehicles. It has recently moved into AI data centers, looking at ways to supply power equipment and energy storage as AI workloads require more reliable electricity.

Tencent has its own AI model called Hunyuan, but it trails behind competitors like ByteDance’s Doubao and DeepSeek itself. Investing in DeepSeek could help Tencent stay competitive with Alibaba, which has focused on its own Qwen model.

Hong Kong-based IDG Capital and Monolith Capital are also among the prospective investors, according to sources. IDG declined to comment. Monolith did not respond.

Timeline and IPO Plans

The round is expected to close within the next couple of weeks, though sources said the financial details could still change.

DeepSeek has not made any statements about whether it plans to go public in the future.

The deal would be the startup’s first-ever external fundraising round since it rose to global prominence.

Sources who shared details with Reuters asked not to be named because the information is confidential.

If completed as reported, the round would be one of the largest first-time fundraises for an AI company globally.

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