Chinese AI startup DeepSeek is reportedly preparing to raise $7 billion in its first funding round, potentially valuing the company at nearly $60 billion.
Chinese artificial intelligence startup DeepSeek is reportedly planning to secure around 50 billion yuan, approximately $7.4 billion, in its first-ever external funding round, according to people familiar with the matter.
The investment could place the company’s valuation between 350 billion yuan and 400 billion yuan after the fundraising process is completed, making DeepSeek one of China’s most valuable AI firms.
Sources said major Chinese companies, including Tencent Holdings and battery manufacturer CATL, are expected to participate in the funding round. The discussions remain private and official confirmation has not yet been announced.
DeepSeek gained international attention last year after releasing its V3 and R1 AI models, which impressed technology experts and sparked discussions in Silicon Valley about China’s rapidly advancing AI capabilities.
The company had previously avoided outside investment for years, relying instead on support from founder Liang Wenfeng and his quantitative hedge fund, High-Flyer. However, the rapidly evolving AI industry has increased pressure on companies to secure larger financial resources and stronger computing infrastructure.
The AI market is now shifting beyond traditional chatbot systems toward more advanced AI agents capable of handling complex tasks with minimal human involvement. These next-generation systems require significantly greater processing power and research investment.
In April, DeepSeek announced that its upcoming V4 model would focus heavily on AI agent technology and open-source innovation. Despite those claims, some independent evaluations suggest the model still trails leading AI systems developed by major American and Chinese competitors.
Although the planned fundraising would rank among the largest private technology investments in China, it remains smaller than recent funding rounds completed by major U.S.-based AI firms. Anthropic recently secured $65 billion, while OpenAI reportedly raised $122 billion earlier this year.
Industry analysts say geopolitical tensions and export restrictions continue to shape DeepSeek’s growth strategy. Western restrictions on advanced semiconductor exports limit the company’s access to cutting-edge American AI chips, reducing its ability to compete directly with the massive computing budgets of U.S. rivals.
Experts believe these limitations may push Chinese AI companies to focus more on efficiency, open-source systems, and domestic technology development as global competition in artificial intelligence continues to intensify.
