Chinese artificial intelligence startup DeepSeek is preparing to raise approximately 50 billion yuan or around $7.4 billion in its first external funding round, according to people familiar with the matter. This move would mark one of the largest fundraising efforts in the global AI sector.
Reuters reported that the funding round is expected to include participation from major Chinese companies including Tencent Holdings and battery giant CATL. The deal would provide DeepSeek with significant resources as competition intensifies among AI developers in China and globally.
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The planned fundraising comes after DeepSeek emerged as one of China’s most closely watched AI startups. The company gained international attention in early 2025 when its large language models demonstrated performance that industry observers compared favorably with leading western AI systems, while reportedly operating at lower costs.
The potential investment also reflects growing confidence among Chinese technology and industrial firms in the country’s domestic AI ecosystem. As geopolitical tensions and technology restrictions continue to shape the global AI landscape, Beijing has prioritized the development of homegrown artificial intelligence capabilities.
Tencent’s reported participation would add one of China’s largest technology companies to DeepSeek’s list of backers. CATL’s involvement highlights the increasing convergence between advanced computing, industrial manufacturing and artificial intelligence as companies seek to integrate AI across a broad range of sectors.
The fundraising effort comes amid a surge in investor interest in AI companies worldwide. U.S.-based firms such as OpenAI, Anthropic and xAI have attracted billions of dollars in funding over the past two years, driving a global race to develop increasingly sophisticated AI models and infrastructure.
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For India and other emerging technology markets, DeepSeek’s rise underscores how the AI competition is becoming increasingly multipolar. While much attention remains focused on Silicon Valley, Chinese firms are investing heavily in artificial intelligence research, semiconductor development and cloud computing capabilities.
Neither DeepSeek, Tencent nor CATL immediately commented on the reported fundraising plans, Reuters said. The terms of the deal could still change as discussions continue.