DeepSeek is lining up an approximately 50 billion yuan ($7 billion) capital raise in its first-ever financing effort, with Tencent and battery manufacturer CATL among the leading investors, sources told Reuters. The proposed round would potentially value DeepSeek at between 350 billion and 400 billion yuan ($52-$59 billion).
Under the terms being discussed, Tencent would consider putting in about 10 billion yuan, while CATL would contemplate contributing roughly 5 billion yuan, which would position both companies as the largest external participants in the deal.
Founder Liang Wenfeng has committed a substantial personal stake to the transaction, agreeing to invest 20 billion yuan of his own capital into the business, according to the reporting. In addition, China’s national artificial intelligence fund, videogame developer Netease, and e-commerce giant JD.Com are reported to be in final talks to participate. The total number of investors planned for the round is said to be fewer than 10.
People familiar with the matter indicated that DeepSeek aims to close the financing within the next couple of weeks. If completed as described, the round would mark the company’s first major external raise and represent a significant infusion of capital from a group of leading Chinese technology and industrial firms.
Background on DeepSeek’s technology
The startup has emerged as one of China’s prominent artificial intelligence companies after its V3 and R1 models attracted global attention early last year. Since that initial recognition, DeepSeek has released multiple new open source models, most recently the V4 series.
Observers have praised the company’s models for delivering performance that was comparable to offerings from established global players such as OpenAI and Anthropic, while requiring substantially lower computational resources and training costs, according to the reporting.
Market context and potential significance
A successful close of this size would represent a notable allocation of capital into a single Chinese AI startup, led by both a major internet conglomerate and a leading battery manufacturer. The involvement of the national AI fund, Netease, and JD.Com—if finalized—would broaden the investor base to include public- and private-sector technology and commerce players.
Details remain subject to confirmation and the completion of negotiations with the few remaining prospective investors.