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DeepSeek Raises $7.4B in First Outside Funding at $50B Valuation

Chinese AI startup DeepSeek raised over $7.4 billion in its first external funding round, pushing its valuation past $50 billion, according to The Information.

A 3D rendering of a neural network with abstract neuron connections in soft colors.

Photo: Google DeepMind / Pexels

DeepSeek, a Chinese AI startup, has secured more than 50 billion yuan—approximately $7.4 billion—in its first external funding round, raising its valuation to over $50 billion, according to The Information. This marks the company's first time securing outside investment, signaling a significant milestone in its growth trajectory. The funding round reflects growing confidence in DeepSeek's capabilities and potential in the global AI landscape.

The deal structure is unique, as investors funneled their money into a limited partnership managed by CEO Liang Wenfeng rather than directly into the company. This arrangement denies investors voting rights and imposes a five-year lock-up period, with the exception of China's state-backed AI investment fund, which retained voting rights. Founder Liang Wenfeng contributed about 20 billion yuan to the round, according to Reuters.

Tencent and CATL, a battery manufacturer, are among the major external backers. Liang emphasized that he prioritizes foundational AI research and AGI development over short-term profits, stating his intent to continue building open-source models. DeepSeek gained global attention early last year with its V3 and R1 models.

In April 2026, the company launched V4, the largest open-weights model to date, which operates on Huawei chips. DeepSeek is also competing with U.S. rivals by offering its V4 Pro model at a 75 percent discount, making it roughly 11 times cheaper on input and 35 times cheaper on output compared to OpenAI's GPT-5.5. Despite its impressive valuation, DeepSeek's valuation remains modest compared to OpenAI and Anthropic, which are both approaching the trillion-dollar mark.

Source: thedecoder

Key points

DeepSeek raised more than 50 billion yuan, about $7.4 billion, in its first external funding round.
The company's valuation now tops $50 billion, according to The Information.
Investors had to put their money into a limited partnership managed by CEO Liang Wenfeng.
The only exception is China's state-backed AI investment fund, which invested directly and keeps its voting rights.
Founder Liang Wenfeng put in about 20 billion yuan, according to Reuters.
DeepSeek launched V4, the largest open-weights model to date, which runs on Huawei chips.
DeepSeek made its 75 percent discount on V4 Pro permanent, making the model roughly 11 times cheaper on input and 35 times cheaper on output than OpenAI's GPT-5.5.

Source: The Decoder Read the original →

WRITTEN BY

Marcus Feld

AI Business & Markets

Marcus reports on AI funding, acquisitions, partnerships, and the business behind the technology.