China-based DeepSeek has closed its first external funding round, raising over USD 7.40 billion at a valuation exceeding USD 50 billion.
Reuters reported the findings but was unable to independently verify the details, and DeepSeek did not respond to requests for comment at the time of publication.
The round marks DeepSeek's first external fundraise. The company drew widespread international attention in early 2025 following the release of its V3 and R1 language models and has since been positioned as a key figure in China's AI development.
An unconventional deal structure
The terms of the round differ from standard venture capital practice. Rather than directing capital into DeepSeek itself, investors were required to place funds into a limited partnership managed by the company's chief executive, Liang Wenfeng. In addition, under the arrangement, investors are subject to a five-year lock-up period and will not hold voting rights, a structure that concentrates governance authority with the founder.
China's National Artificial Intelligence Industry Investment Fund is the sole exception. The state-backed entity invested directly in DeepSeek, retains voting rights, and is not bound by the lock-up condition. Its participation in these distinct terms sets it apart from all other investors in the round.
Liang reportedly committed approximately 20 billion yuan, around USD 2.96 billion, of his own capital to the round. Technology conglomerate Tencent was reported to be considering a contribution of ten billion yuan, approximately USD 1.48 billion, while battery manufacturer CATL was evaluating a position of approximately five billion yuan, equivalent to around USD 740 million. If confirmed, both companies would account for substantial external positions in the round.
Background
DeepSeek gained international recognition in early 2025, when its V3 and R1 language models drew widespread attention from AI researchers and developers in the US. The releases prompted renewed debate around the pace and direction of AI development in China and challenged prevailing assessments of the country's capabilities in the field.
The funding structure, which preserves founder control while incorporating external capital on a considerable scale, reflects a governance model that prioritises long-term decision-making autonomy over broad shareholder participation. Furthermore, the distinct treatment afforded to the state-backed fund, with direct equity participation and voting rights unavailable to private investors, adds a layer of complexity to the company's capital structure and differentiates it from comparable international AI companies.
