DeepSeek raises $7.4 billion in funding round, surpasses $50 billion valuation

Chinese artificial intelligence startup DeepSeek has raised more than 50 billion yuan ($7.4 billion) in its first funding round. According to Reuters, citing The Information, the company’s valuation has surpassed $50 billion.

The Wall Street Journal (WSJ) reported that the capital will be used to support the costly development of advanced artificial intelligence technologies.

According to the newspaper, citing sources familiar with the matter, investors valued the company at more than $50 billion. The valuation makes DeepSeek the most valuable AI startup in China.

DeepSeek founder Liang Wenfeng reportedly owned about 90% of the company before the funding round. Liang is said to have contributed roughly $3 billion during the fundraising process, making him the largest participant in the round.

According to Reuters, the transaction was structured in an unusual way that allows Liang to retain control of the company.

Rather than investing directly in DeepSeek, investors were required to invest through a limited partnership managed by a senior executive of the startup. Under the arrangement, investors were not granted voting rights. The report also said restrictions were placed on the use of invested funds for a period of five years.

The sole exception was the China National Artificial Intelligence Industry Investment Fund. The fund reportedly invested approximately $150 million directly in DeepSeek, allowing it to retain both voting rights and full discretion over its stake.

Other major investors in the funding round included Tencent, which invested approximately $1.5 billion, and Contemporary Amperex Technology, which invested about $740 million.

Bloomberg previously described the transaction as one of the largest fundraising rounds undertaken by a Chinese startup. According to the agency, the investment marks a new stage in the efforts of leading Chinese AI companies to compete with their US rivals.

DeepSeek told prospective investors that it would prioritize foundational and transformative AI research over short-term commercialization.

Based in the Chinese city of Hangzhou, DeepSeek emerged as one of Beijing’s most prominent AI companies after unveiling a more powerful and lower-cost model more than a year ago. The WSJ reported that interest surrounding the company has accelerated AI adoption in China and increased investor appetite for domestic startups.

Liang Wenfeng has previously said he intends to continue developing open-source AI models and ultimately aims to achieve artificial general intelligence (AGI). According to Bloomberg, the strategy continues an approach that has contributed to the spread of open models and influenced companies across China’s AI market, including Alibaba’s Qwen platform.

Bloomberg added that while global rivals such as OpenAI and Anthropic are exploring public offerings and revenue-generation strategies, DeepSeek has maintained its “research first” approach.