DeepSeek nears $7.4B funding round in one of China’s largest AI deals

Chinese AI startup DeepSeek is close to finalizing a funding round of about $7.4 billion, in what would mark one of the largest startup financings in China’s technology sector, according to reports.

The round, which is still being finalized, is expected to include major investors such as Tencent Holdings and CATL, alongside participation from the company’s founder. The post-money valuation is estimated to be between $52 billion and $59 billion.

Founded in 2023, DeepSeek has quickly emerged as one of China’s most closely watched AI companies, gaining global attention for its large language models and cost-efficient training approach compared to Western competitors.

The funding marks a significant shift for the company, which had previously relied on internal backing and had not pursued large-scale external capital. The latest round signals a new phase of expansion as competition intensifies across the global AI landscape.

Industry observers say the deal reflects broader momentum in AI investment, particularly as companies race to scale model development, infrastructure, and enterprise adoption capabilities.

If completed, the transaction would rank among the largest private technology fundraises in China, underscoring both investor confidence and the accelerating capital requirements of frontier AI development.