Chinese artificial intelligence startup DeepSeek is preparing its first external fundraising round, a move that could value the company at up to $50 billion as the large language model developer seeks additional resources to expand operations.
According to people familiar with the matter, DeepSeek is expected to raise between $3 billion and $4 billion. The proceeds are expected to be used to strengthen computing capacity and improve employee benefits as competition intensifies across China’s AI sector.
The company’s shift toward outside funding marks a significant change from its previous strategy of operating without external investors. Founded by billionaire hedge fund manager Liang Wenfeng, who reportedly controls nearly 90% ownership in the company, DeepSeek gained wider industry attention in early 2025 following the launch of its large language model platform.
China’s state-backed China Integrated Circuit Industry Investment Fund, also known as the Big Fund, is reportedly in advanced discussions to lead the financing round. The fund serves as the principal financial vehicle behind China’s national artificial intelligence investment efforts.
Separately, Chinese technology companies Tencent Holdings and Alibaba have also held discussions about participating in the fundraising, according to reports. DeepSeek did not immediately respond to requests for comment, while Tencent and the China Integrated Circuit Industry Investment Fund declined to comment.
China’s 60 billion yuan national artificial intelligence fund, established in January 2025, is also involved in discussions related to the financing, according to one source familiar with the matter. Previous reports by the Financial Times indicated that discussions around the funding round had placed DeepSeek’s valuation at roughly $45 billion, highlighting the range currently under consideration.
The planned fundraising comes as DeepSeek faces growing competition from Chinese AI companies backed by major technology groups and investors. Rivals include ventures linked to ByteDance and Alibaba, as well as emerging AI startups such as MiniMax and Moonshot AI, many of which have already secured substantial funding from private and public markets.
DeepSeek’s move toward external capital would place it more in line with other frontier AI companies that are raising funds to scale infrastructure, retain talent, and accelerate development amid intensifying competition in the global artificial intelligence industry.
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