China-Backed Investors Value DeepSeek at Up to $50 Billion

DeepSeek is raising its first external funding round, with Chinese government-backed investors valuing the company at up to $50 billion, according to the Wall Street Journal.

The fundraising marks a shift for DeepSeek, which previously avoided outside capital. The round is expected to be led by China's national artificial intelligence fund, backed by the China Integrated Circuit Industry Investment Fund. The fund was established to support domestic AI development and reduce reliance on foreign technology.

Sources told Reuters that DeepSeek could raise between $3 billion and $4 billion to expand its computing capacity and improve employee incentives. The company was founded by hedge fund billionaire Liang Wenfeng, who has so far financed it through his firm High-Flyer Capital Management.

Chinese technology firms including Tencent and Alibaba Group are also in discussions to participate in the round. DeepSeek has gained prominence for its large language models optimized for hardware produced by Huawei, positioning it as a key player in China's push for AI self-sufficiency.