Chinese AI startup DeepSeek has successfully secured over 50 billion yuan, approximately $7.40 billion, in its inaugural external funding round, as reported by The Information on Tuesday. This funding has propelled the company’s valuation to exceed $50 billion.
The funding arrangement ensures that founder and CEO Liang Wenfeng retains control, with investors being required to invest in a limited partnership overseen by Liang rather than directly into DeepSeek. Investors will be subject to a five-year lock-up period without voting rights.
China’s National Artificial Intelligence Industry Investment Fund stands out as the sole investor exempt from these restrictions, having made a direct investment in DeepSeek while retaining voting rights and freedom from the lock-up period, according to The Information.
Earlier this month, Reuters disclosed that Liang had committed 20 billion yuan of his personal funds to the fundraising effort. Major tech player Tencent is contemplating an investment of 10 billion yuan, while battery manufacturer CATL is exploring a 5 billion yuan investment, positioning them as the primary external supporters.
DeepSeek gained international recognition in early 2021, with its V3 and R1 models receiving commendation in Silicon Valley. This success challenged preconceptions about China’s AI capabilities, solidifying the company’s status as a leader in the national AI landscape.
Despite Reuters’ inability to independently verify the information, attempts to reach out to DeepSeek for comments were unsuccessful at the time of reporting.
