DeepSeek closes in on $7.4b raise backed by Tencent, CATL
Synopsis
DeepSeek, the Chinese AI lab that shook global benchmarks while shunning outside money, is now closing a $7.4 billion debut funding round at a near-$60 billion valuation — a six-fold jump in weeks — with Tencent, CATL, and founder Liang Wenfeng among the biggest backers.
Key Takeaways
DeepSeek is finalising its first-ever external funding round, raising over 50 billion yuan (US$7.4 billion) .
The round values the company at just under US$60 billion , up six-fold from its US$10 billion valuation in April 2026 .
Tencent Holdings is expected to invest 10 billion yuan ; CATL around 5 billion yuan ; NetEase and JD.com about 3 billion yuan each.
Founder and CEO Liang Wenfeng is reportedly contributing approximately 20 billion yuan of personal capital.
VC firms IDG Capital, Monolith, Loyal Valley Capital , and Shixiang Tech are also participating in the round.
The raise marks a strategic shift for DeepSeek , which had previously resisted all external investment.
Chinese AI start-up DeepSeek is finalising its first-ever external funding round, securing over 50 billion yuan (US$7.4 billion) at a valuation of just under US$60 billion, according to people familiar with the matter. The deal marks a six-fold surge from the company's US$10 billion valuation recorded in April 2026, underscoring how rapidly investor appetite for frontier AI has escalated.
A landmark first for a capital-resistant start-up
Until now, DeepSeek had deliberately avoided external capital — an unusual stance for a company that rattled global AI benchmarks with its low-cost model releases. The decision to open the books signals a strategic pivot: the Hangzhou-based lab apparently needs fresh resources to sustain its push toward more compute-intensive research, including work on artificial general intelligence (AGI).
Founder and CEO Liang Wenfeng is reportedly committing approximately 20 billion yuan of his own capital to the round, according to the people familiar with the matter, demonstrating his personal conviction in the company's trajectory.
Who is writing the cheques
Market-oriented investors and Chinese tech giants have committed roughly 30 billion yuan to the round. Tencent Holdings is expected to invest 10 billion yuan, while NetEase and JD.com are each set to contribute about 3 billion yuan, the people said. Contemporary Amperex Technology Limited (CATL), the world's largest electric-vehicle battery maker, is expected to put in around 5 billion yuan.
A clutch of venture capital firms is also joining the round, reportedly including IDG Capital, Monolith, Loyal Valley Capital, and Shixiang Tech.
Why it matters
The sheer scale of the raise — and the identity of the backers — reflects how deeply DeepSeek has embedded itself in China's broader industrial ecosystem. CATL's participation is particularly notable: it suggests that companies outside the traditional tech sector are betting that advanced AI will be central to their own future competitiveness in areas such as autonomous vehicles and smart manufacturing.
The round also arrives amid sustained US export controls on advanced semiconductors, forcing Chinese AI developers to engineer cost efficiencies that have, paradoxically, made DeepSeek's models globally competitive.
The competitive backdrop
Globally, DeepSeek now sits in a funding bracket that rivals the war chests of OpenAI and Anthropic, both of which have raised tens of billions of dollars from US tech incumbents and sovereign funds. The near-US$60 billion valuation puts DeepSeek among the most valuable private AI companies in the world.
What's next
With capital secured, analysts will watch whether DeepSeek accelerates procurement of domestically produced Huawei Ascend chips to offset restricted access to Nvidia hardware, and whether the new investor relationships translate into commercial deployments across Tencent's and JD.com's vast platforms. The closing of this round could trigger a fresh wave of valuation re-ratings across the Chinese AI landscape.
Point of View
Not a side bet. What mainstream coverage underplays is the valuation velocity: a six-fold jump in under two months suggests the market is pricing in a scenario where DeepSeek becomes a foundational model provider for Chinese enterprise, much as OpenAI has in the West. The round also quietly reframes the chip-war narrative — rather than being hobbled by Nvidia export restrictions, DeepSeek's capital efficiency story has become its most powerful fundraising asset.
NationPress
21 Jul 2026
Frequently Asked Questions
How much is DeepSeek raising in its funding round?
DeepSeek is raising over 50 billion yuan (US$7.4 billion) in its first-ever external funding round, according to people familiar with the matter. The round values the company at just under US$60 billion .
Who is investing in DeepSeek's funding round?
Key investors include Tencent Holdings (expected 10 billion yuan ), CATL (around 5 billion yuan ), NetEase and JD.com (about 3 billion yuan each), and VC firms IDG Capital , Monolith , Loyal Valley Capital , and Shixiang Tech . Founder Liang Wenfeng is also reportedly contributing around 20 billion yuan personally.
Why is DeepSeek raising external funding now after resisting it?
DeepSeek had previously avoided outside capital, but the scale of resources required for advanced AI research — including work toward artificial general intelligence — appears to have driven the strategic shift. The round also brings in powerful commercial partners across China's tech and industrial sectors.
How does DeepSeek's valuation compare to rivals like OpenAI?
At just under US$60 billion , DeepSeek now ranks among the world's most valuable private AI companies, though it remains below OpenAI 's valuation. The six-fold jump from US$10 billion in April 2026 is one of the fastest valuation accelerations in recent AI funding history.
What does CATL's investment in DeepSeek mean for the EV industry?
CATL 's participation signals that the world's largest EV battery maker sees advanced AI as critical to its own future in autonomous vehicles and smart manufacturing. It reflects a broader trend of Chinese industrial giants moving beyond passive observation to become active stakeholders in frontier AI development.
