DeepSeek plans to raise $7.4B in maiden funding round
What's the story
Chinese artificial intelligence (AI) start-up DeepSeek is gearing up for its first major fundraising round, hoping to raise around CNY 50 billion ($7.4 billion). The company's potential valuation post-investment could be between CNY 350 billion and CNY 400 billion ($52 billion and $59 billion), according to Reuters. The funding round has attracted interest from several high-profile investors including Tencent Holdings and CATL.
Rise to fame
DeepSeek's rise and founder's commitment
DeepSeek became China's national AI champion and gained global recognition last year, when its V3 and R1 models were widely praised in Silicon Valley. The company's success has challenged US perceptions of China's AI capabilities. The start-up's founder, Liang Wenfeng, has also pledged CNY 20 billion of his own money toward the fundraising effort.
Investor interest
Tencent and CATL's potential investments
Tech giant Tencent is said to be considering a CNY 10 billion investment while battery manufacturer CATL is eyeing a CNY 5 billion stake. If these investments go through, they would make Tencent and CATL the largest external investors in this funding round. DeepSeek is also in advanced talks with China's national artificial intelligence fund, gaming developer NetEase, and e-commerce giant JD.com for potential investments.
Outlook
Funding round timeline and other investors
The funding round is likely to be completed in next few weeks, although financial details could still change. DeepSeek has not commented on whether it plans an initial public offering (IPO) in the future. Other potential investors include Hong Kong-based IDG Capital and Monolith Capital.