DeepSeek Raises $7.4 Billion in First Major Funding Round
Chinese AI startup DeepSeek has raised over 50 billion yuan ($7.4 billion) in its first external funding round, achieving a valuation between $52-$59 billion. Investors include Tencent, CATL, and China's National AI Industry Investment Fund, with founder Liang Wenfeng personally contributing 20 billion yuan. The unusual deal structure places investor capital into a limited partnership managed by Liang, with a five-year lock-up and no voting rights, except for the state-backed fund. DeepSeek plans to double its workforce and use the funds to develop its next-generation V4 model, aiming to compete globally despite US export restrictions.
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China’s DeepSeek plans to double staff across all departments
Chinese AI startup DeepSeek announced plans to double its workforce across all departments, according to a report by The Business Times. The expansion comes as the company is in the final stages of raising approximately 50 billion yuan (about $6.9 billion USD). The fundraising could enable DeepSeek to become more aggressive in marketing its AI services globally. The news was published on June 26, 2026, and highlights the rapid growth and ambition of the Chinese AI sector, with DeepSeek positioning itself for international competition despite potential geopolitical tensions.
The Business TimesChina's DeepSeek closes over $7 billion funding with unusual deal structure
Chinese AI startup DeepSeek has raised more than 50 billion yuan ($7.40 billion) at a valuation exceeding $50 billion in its first funding round, using a structure designed to preserve founder control. The funding required investors to put capital into a limited partnership managed by CEO Liang Wenfeng rather than into DeepSeek itself. Investors are subject to a five-year lock-up and will not have voting rights. China's National Artificial Intelligence Industry Investment Fund is the only exception, having invested directly in DeepSeek and retaining voting rights and freedom from the lock-up. Reuters reported earlier that founder Liang committed 20 billion yuan of his own money, with Tencent considering 10 billion yuan and CATL looking at 5 billion yuan. DeepSeek became China's national AI champion after its V3 and R1 models drew widespread praise in Silicon Valley.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.China's DeepSeek raises over $50 billion in unusual funding round
Chinese AI startup DeepSeek has raised more than 50 billion yuan (approximately $7 billion) at a valuation exceeding $50 billion in its first funding round. The deal uses an unusual structure requiring investors to put capital into a limited partnership managed by CEO Liang Wenfeng, rather than directly into DeepSeek. Investors face a five-year lock-up period and have no voting rights. China's National AI Industry Investment Fund is the only exception, investing directly with voting rights and no lock-up. Liang committed 20 billion yuan of his own money to the round. Tencent is considering a 10 billion yuan investment, and battery giant CATL is looking at 5 billion yuan. DeepSeek gained global fame in early 2025 with its V3 and R1 AI models, challenging US assumptions about China's AI capabilities.
The Business TimesChina's DeepSeek closes over 50 billion yuan funding with unusual deal structure
Chinese AI startup DeepSeek has raised more than 50 billion yuan (approximately US$6.9 billion) in its first funding round, achieving a valuation exceeding US$50 billion. The deal features an unusual structure requiring investors to place capital into a limited partnership managed by CEO Liang Wenfeng, rather than directly into DeepSeek. Investors face a five-year lock-up period and will have no voting rights. The only exception is China's National Artificial Intelligence Industry Investment Fund, which invested directly and retains voting rights. Tech conglomerate Tencent is reportedly considering a 10 billion yuan investment, and battery giant Contemporary Amperex Technology (CATL) is looking at five billion yuan. DeepSeek gained global prominence in early 2025 with its V3 and R1 AI models, challenging US assumptions about China's AI capabilities.
The Business TimesDeepSeek to Raise $7.4 Billion in Maiden Funding Round from Tencent, CATL
Chinese AI startup DeepSeek is set to raise approximately 50 billion yuan ($7.4 billion) in its first external funding round, according to sources. Investors include Tencent Holdings and CATL, with founder Liang Wenfeng contributing 20 billion yuan of his own money. The round values the company between $52 billion and $59 billion. This marks a reversal of DeepSeek's previous strategy of avoiding outside capital, enabled by Liang's quant hedge fund High-Flyer. The AI industry has shifted focus from low-cost chatbots to more powerful AI agents, requiring greater computing power. DeepSeek's next-generation V4 model aims to compete but lags behind some US and Chinese rivals. The fundraising is large by Chinese standards but pales compared to recent rounds by Anthropic ($65 billion) and OpenAI ($122 billion), partly due to Western export bans limiting DeepSeek's access to advanced US hardware.
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