DeepSeek, a Chinese AI startup, is reportedly considering a new fundraising initiative a mere month after finalizing its initial funding round. The first round successfully secured more than 50 billion yuan (approximately $7.4 billion) at an impressive valuation exceeding $50 billion. This initial financing ranks among the largest private AI funding rounds in China.
Several investors participated in this first round, although the structure was unusual. Most external investors were required to invest in a limited partnership managed by DeepSeek CEO Liang Wenfeng, relinquishing voting rights and agreeing to a five-year lock-up period on their shares. This arrangement was designed to ensure Liang's absolute control over the company. The sole exception was China's National Artificial Intelligence Industry Investment Fund, which invested directly in DeepSeek and retained voting rights without the lock-up restrictions.
Key investors in the first round included Liang Wenfeng himself, who reportedly contributed 20 billion yuan (roughly 40% of the raise). Tencent was considering a 10 billion yuan investment, and battery maker CATL was exploring a 5 billion yuan commitment. Other potential investors mentioned in advanced talks included NetEase, JD.com, IDG Capital, and Monolith Management. This significant capital influx aims to fuel DeepSeek's computing capabilities, enhance employee benefits, and accelerate product commercialization and market entry.
