Chinese AI startup DeepSeek is preparing to raise about 50 billion yuan, or roughly $7.4 billion, in its first funding round, according to people familiar with the matter.
The proposed deal would mark a major financing event for the company, which rose to prominence after its V3 and R1 models won praise in Silicon Valley and helped shift perceptions of China’s AI capabilities. The startup is expected to attract backing from a small group of investors, with the round potentially closing within the next few weeks, the people said.
If completed on the terms now under discussion, the investment could value DeepSeek at between 350 billion yuan and 400 billion yuan, equivalent to about $52 billion to $59 billion. The sources cautioned that the terms could still change before the fundraising is finalized.
DeepSeek founder Liang Wenfeng has reportedly committed 20 billion yuan of his own capital to the round. Among outside investors, Tencent is considering a 10 billion yuan commitment, while battery maker CATL is looking at putting in 5 billion yuan, according to the sources. That would make them the largest external investors if the deal proceeds as outlined.
The company is also said to be in advanced talks with China’s national artificial intelligence fund, NetEase and JD.com. The planned investor list is expected to remain relatively small, with fewer than 10 participants in total.
Tencent, CATL, NetEase, JD.com, DeepSeek and the China Integrated Circuit Industry Investment Fund, which backs the national AI fund, did not immediately respond to requests for comment. Tencent and CATL declined to comment.
The lineup reflects a broader push by China to build a more self-reliant AI ecosystem, spanning not only model development but also the hardware and energy systems needed to support large-scale computing.
CATL, best known as a major supplier in the electric vehicle battery market, has recently been exploring opportunities in AI data centers, including power equipment and energy storage solutions. That effort comes as rising AI workloads increase demand for reliable electricity and infrastructure.
Tencent, meanwhile, has been working to promote its own Hunyuan model but still trails domestic rivals such as ByteDance’s Doubao and DeepSeek. A deeper relationship with DeepSeek could help Tencent compete more effectively with Alibaba, which has focused heavily on its own Qwen model.
DeepSeek has not publicly said whether it plans to pursue an initial public offering in the future. The startup’s fast ascent has made it one of China’s most closely watched AI companies, especially after its early model releases drew international attention.
The reported fundraising would add a fresh boost to a company that has become a symbol of China’s push to compete at the frontier of artificial intelligence while reducing dependence on foreign technology and supply chains.