DeepSeek, a Chinese artificial intelligence company, has completed its first-ever funding round, securing more than 50 billion yuan, or roughly $7.4 billion, according to people with knowledge of the matter. The financing round placed the company’s valuation above $50 billion.
Sources familiar with the transaction said the investment was structured so that incoming capital is contributed to a limited partnership overseen by DeepSeek’s chief executive officer, Liang Wenfeng. That arrangement effectively centralizes investor capital under the CEO’s management and was described by those sources as a mechanism for Liang to maintain absolute control of the business.
Under the terms reported, investor holdings are subject to a five-year lockup during which investors are unable to sell their stakes. The combination of the management-controlled vehicle and the forced lockup limits investor flexibility over the medium term and concentrates governance authority in the hands of the CEO.
Several major domestic investors were reported to have demonstrated interest in the fundraising. Among those named were internet conglomerate Tencent and battery manufacturer CATL. The exact commitments from any individual investor were not disclosed in the reporting cited.
DeepSeek has been regarded as one of China’s leading AI developers following the rollout of its V3 and R1 models, which drew global attention last year. Those models were noted for delivering advanced capabilities at comparatively low operating costs, factors that helped elevate the company’s profile and likely supported investor interest in the financing round.
The transaction marks a significant inflow of capital for the startup and formalizes a governance and liquidity structure that will shape investor rights and restrictions for at least the next five years. The reporting that details the structure referenced two people with knowledge of the matter.
Contextual note - Information in this article is based on reporting that cited people familiar with the funding round; the article reflects only the facts reported by those sources.