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DeepSeek Raises $7.4 Billion in First Funding Round at Over $50 Billion Valuation

DeepSeek reportedly raised $7.4 billion in its first outside funding round, valuing the Chinese AI company at more than $50 billion. The deal used a limited partnership managed by founder Liang Wenfeng, allowing him to retain control while imposing a five-year lockup on most investors.

Written By : Kelvin Munene
Reviewed By : Manisha Sharma

Chinese artificial intelligence company DeepSeek has reportedly completed its first external funding round, raising more than 50 billion yuan or about $7.4 billion. The deal values DeepSeek at more than $50 billion, according to people familiar with the transaction. However, the company has not released official details and the reported terms remain unconfirmed.

DeepSeek Funding Round Uses Founder-Controlled Partnership

Investors reportedly placed their capital into a limited partnership managed by DeepSeek Chief Executive Liang Wenfeng. The arrangement gives Liang control over how the funds are managed and limits the influence of outside backers.

The reported structure does not provide most investors with direct voting rights. It also includes a five-year lockup period, which prevents participants from selling their holdings during that time.

These terms differ from common technology funding deals, where large investors often receive company shares, board seats or voting power. In DeepSeek’s case, the partnership structure allows the company to raise capital without giving investors direct control over its operations.

A state-backed artificial intelligence fund reportedly received separate terms. Unlike other participants, it gained direct ownership and voting rights while avoiding the five-year restriction. DeepSeek has not confirmed this part of the deal.

Liang Wenfeng Leads DeepSeek’s $7.4 Billion Investment

Liang reportedly invested 20 billion yuan, or nearly $3 billion, making him the largest contributor to the funding round. His financial commitment gives him a dominant position within the new investment structure.

Chinese technology company Tencent was linked to a possible investment of about 10 billion yuan. Battery manufacturer CATL was also considering a contribution of around 5 billion yuan, according to earlier reports.

The final list of investors has not been disclosed. Exact allocations may also differ from the amounts discussed before the round closed.

DeepSeek previously relied on funding from High-Flyer, the quantitative hedge fund founded by Liang. The AI developer had not accepted outside venture capital before this transaction.

The new financing gives DeepSeek access to more capital while allowing Liang to keep control of the company’s direction. The reported five-year lockup also limits early investor exits.

DeepSeek Valuation Rises After V3 and R1 Model Growth

DeepSeek gained global attention after releasing its V3 and R1 artificial intelligence models. The systems attracted interest for their technical performance and lower reported operating costs.

The company became one of China’s best-known AI developers as demand increased for local language models and computing systems. Its growth also drew attention from major domestic companies and state-backed funds.

Earlier reports placed DeepSeek’s valuation between $52 billion and $59 billion after the funding round. The latest report said the company was worth more than $50 billion but did not provide a final figure.

The funding gives DeepSeek more resources for model development, computing capacity and research. It may also support the company’s efforts to compete with larger AI developers in China and other markets.

Still, several details remain unclear. DeepSeek has not confirmed the investor list, valuation or ownership terms. The company has also not issued a public statement about the reported funding round.

Also Read: Top News Today: DeepSeek V4 Demand, Mobility Signage Funding, and More 

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