China's DeepSeek Secures Over $7 Billion in Landmark Funding Round

Key facts

• Chinese AI lab DeepSeek is finalizing its first external funding round.
• The round is expected to raise over 50 billion yuan ($7.4 billion).
• The company's post-money valuation is reported to be between $52 billion and $59 billion.
• Tencent and CATL are among the lead external investors.
• Founder Liang Wenfeng is reportedly contributing about 40% of the target himself.

Chinese Artificial Intelligence lab DeepSeek is reportedly closing its first external funding round, raising over 50 billion yuan (approximately $7.4 billion) at a valuation between $52 billion and $59 billion. This marks a significant shift for the lab, which was known for previously shunning outside capital.

The deal structure is described as unusual, with founder Liang Wenfeng reportedly contributing about 40% of the target himself. Lead external investors include technology giant Tencent and battery manufacturer CATL. A state-linked fund, historically backing chip manufacturing, is also reportedly in final talks to join the round.

This funding round represents a substantial increase in valuation for DeepSeek, with reports indicating a six-fold jump in weeks. The company's open-weight models, such as the V4 line, are a key factor in its appeal to investors.