DeepSeek is on the verge of finalizing a 50 billion yuan ($7.4 billion) financing round that would rank among China’s largest startup fundraises, according to people familiar with the matter. The financing group includes heavyweights such as Tencent Holdings Ltd. and Contemporary Amperex Technology Co. Ltd., and also features participation from the state-backed National Artificial Intelligence Industry Investment Fund.
Within the round, external backers are set to provide roughly 30 billion yuan, valuing the company at about 350 billion yuan. In parallel, DeepSeek’s founder, Liang Wenfeng, has committed approximately 20 billion yuan of his own capital to the transaction, substantially increasing the total funds raised.
Tencent secured the single largest investment in the group with a 10 billion yuan commitment. Reports indicate that Alibaba Group Holding Ltd. was involved in early-stage discussions but ultimately chose not to invest in the round.
DeepSeek’s senior leadership has communicated to prospective investors that the company will emphasize AI research over short-term commercialization initiatives. At least one investor meeting included a pledge from Liang to continue development of open-source AI models while pursuing long-term goals toward artificial general intelligence.
Founded in 2023 and based in Hangzhou, DeepSeek drew attention after releasing an AI model in 2025 that the company says matched capabilities available in Silicon Valley while offering lower costs. The firm is controlled by Liang’s hedge fund, Zhejiang High-Flyer Asset Management.
Beyond model development, DeepSeek is widening its scope into agentic AI - software designed to act autonomously without human intervention - a strategic shift reportedly motivated by the emergence of competitors such as OpenClaw. Company management has framed this work as an evolution of its product roadmap rather than an immediate commercial push.
Context and implications
The round combines substantial external investor capital with heavy insider backing, reflecting both market confidence and significant founder conviction. The presence of the National Artificial Intelligence Industry Investment Fund signals state-level interest in the company’s trajectory. At the same time, leadership’s stated preference for prioritizing research suggests the firm may delay aggressive monetization while focusing on long-term technological development.
This transaction will likely influence investor sentiment in China’s AI startup scene, particularly among firms working on open-source models and autonomous software agents. However, management’s emphasis on research over commercialization leaves the timetable for revenue growth and product rollouts unclear.