DeepSeek is set to raise about 50 billion yuan ($7.4 billion) in its first funding round.
The deal could value the AI startup at up to 400 billion yuan ($59 billion).
Tencent, CATL, NetEase and JD.com are among the investors in talks.
Chinese artificial intelligence (AI) startup DeepSeek is preparing to raise about 50 billion yuan ($7.4 billion) in its first funding round, a deal that could value the company at between 350 billion yuan and 400 billion yuan ($52 billion-$59 billion), according to Reuters.
The funding round is expected to attract several major Chinese companies, including Tencent Holdings and battery maker CATL. Reuters, citing people familiar with the matter, reported that the fundraising could be completed within the next few weeks, although the final terms may still change.
1 May 2026
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DeepSeek rose to prominence early last year after its V3 and R1 AI models gained attention in China and overseas, with many in the technology industry viewing the company as one of the country's leading AI challengers.
Tencent, CATL Among Key Backers
According to the report, DeepSeek founder Liang Wenfeng has committed 20 billion yuan of his own money to the funding round.
Tencent is considering an investment of around 10 billion yuan, while CATL is looking to invest about 5 billion yuan. If completed, the two companies would become the largest external investors in DeepSeek.
The startup is also holding final discussions with China's national AI fund, gaming company NetEase and e-commerce giant JD.com. The report also noted that the company plans to keep the number of investors below 10.
China’s AI Ambitions In Focus
The investor mix reflects growing efforts within China to support home-grown AI development and the infrastructure required to run advanced AI systems.
CATL, best known for its electric vehicle batteries, has been expanding into AI-related infrastructure, including power equipment and energy storage solutions for data centres as demand for computing power rises.
For Tencent, a closer relationship with DeepSeek could help it strengthen its position in China's fast-growing AI market. Reuters noted that Tencent's Hunyuan model trails some domestic rivals, including ByteDance's Doubao and DeepSeek's own models.
DeepSeek has not publicly disclosed any plans for an initial public offering. Reuters reported that Hong Kong-based IDG Capital and Monolith Capital are also among the investors being considered for the round.
