[News] DeepSeek Completes First Funding Round, Raises Over CNY 50 Billion at Valuation Above CNY 330 Billion

DeepSeek has completed its first external fundraising round, securing more than CNY 50 billion (approximately USD 7.4 billion), according to people familiar with the matter cited by The Information. The transaction was structured in an unconventional manner.

The financing values the large language model developer at more than USD 50 billion. To preserve founder and CEO Liang Wenfeng’s absolute control over the company, investors were required to invest in a limited partnership managed by Liang rather than directly in DeepSeek. In addition, all investor holdings are subject to a five-year lock-up period.

The sole exception is the National AI Industry Investment Fund, which invested directly in DeepSeek, is exempt from the lock-up restriction, and retains voting rights. Sources said the fund contributed CNY 1 billion in the financing round.

Under the structure, other outside investors will not receive voting rights in DeepSeek. However, they will gain access to privileged financial information and preferential participation rights in potential future fundraising rounds, a common arrangement in venture capital transactions.

Liang personally invested CNY 20 billion, making him the largest participant in the round. Tencent followed with an investment of CNY 10 billion. Battery manufacturer CATL contributed CNY 5 billion, while JD.com, NetEase, and IDG Capital each invested CNY 3 billion.

As per earlier reporting by The Information, DeepSeek launched its fundraising process in April. The company’s valuation surged within days as investors rushed to gain exposure to one of China’s most prominent AI laboratories.

The financing marks a major shift for DeepSeek. Since its founding in 2023, the company had operated without external capital, relying on profits from its parent firm, High-Flyer Quant, and cultivating a reputation as a research-focused AI lab. Following the global success of its R1 model in early 2025, however, rising computing costs and intensifying competition for top AI talent have made its self-funded, research-driven model increasingly difficult to sustain.

Beyond strengthening its balance sheet, the new funding is expected to support DeepSeek’s next phase of growth, including large-scale model training, inference infrastructure, product commercialization, and talent recruitment.

(Photo credit: DeepSeek)