Deepseek targets $7B in landmark AI funding round led by Tencent

Chinese AI startup Deepseek is raising outside funding for the first time. The company aims to secure $7 billion in a major investment round expected to close in the coming weeks. If successful, the deal will value Deepseek between $52 billion and $59 billion. The funding round has attracted significant interest from major firms. Tech giant Tencent is contributing $1.5 billion, while battery manufacturer CATL plans to invest around $750 million. Other participants include China’s state-backed AI fund, NetEase, and JD.com, with up to 10 firms expected to join.

Founder Liang Wenfeng is also committing nearly $3 billion of his personal funds. The move follows Deepseek’s aggressive price cut for its flagship model, V4-Pro, which intensified competition in the AI market.

In 2025, the company demonstrated its ability to develop high-quality AI models while using fewer computing resources and reducing training costs. This efficiency has positioned Deepseek as a strong contender in the industry. The funding will further strengthen Deepseek’s position in the AI sector. With backing from major investors and a proven track record in cost-effective model development, the company is set to expand its capabilities. The final valuation and investor list will be confirmed once the round completes in the coming weeks.