“Artificial intelligence is no longer a race to build chatbots. It is now a race for computing power, talent and capital.”
Chinese artificial intelligence company DeepSeek is preparing to raise approximately 50 billion yuan ($7.4 billion) in what would be its first external funding round, according to sources.
The fundraising effort could value the company at between 350 billion yuan and 400 billion yuan, equivalent to roughly $52 billion to $59 billion, placing DeepSeek among the world’s most valuable AI startups.
The company is seeking fresh capital as competition in the artificial intelligence industry continues to accelerate, particularly in the development of advanced AI systems and autonomous agents.
Unlike many technology startups that rely heavily on venture capital from their early stages, DeepSeek has largely been funded by its founder, Liang Wenfeng. The company has grown rapidly while maintaining a relatively independent financial structure, a strategy that has helped distinguish it from many of its rivals.
According to sources, Liang is expected to contribute around 20 billion yuan of his own funds as part of the investment round, demonstrating confidence in the company’s future and its ability to compete with some of the biggest names in artificial intelligence.
Several major Chinese corporations are reportedly considering investments in the company, including Tencent and CATL. Sources familiar with the matter indicated that Tencent could invest as much as 10 billion yuan, while CATL may contribute approximately 5 billion yuan.
The fundraising comes at a time when AI companies worldwide are competing for resources needed to build larger and more capable models. Training advanced AI systems requires enormous computing power, specialized hardware and highly skilled engineering teams, all of which demand significant financial investment.
DeepSeek attracted international attention in 2025 following the release of its V3 and R1 models, which earned recognition across the technology industry and strengthened the company’s position among China’s leading AI firms.
Industry observers note that the next stage of AI competition extends beyond chatbot development. Companies are increasingly focusing on AI agents capable of performing complex tasks with limited human intervention, a shift that is driving demand for larger investments and more powerful infrastructure.
Reuters also reported that DeepSeek has held discussions with China’s national AI fund, as well as technology companies including NetEase and JD.com. While details of the fundraising could still change, sources expect the deal to be completed in the coming weeks.
If finalized at the reported valuation, the fundraising would rank among the largest private technology investments in China and further cement DeepSeek’s status as one of the country’s most closely watched artificial intelligence companies.
The development underscores the growing importance of capital in the global AI race, where success increasingly depends not only on innovation but also on the financial resources required to build and scale advanced technologies.
