DeepSeek's first-round fundraising of approximately $7.4 billion: Valuation surges to $590 billion, completed within two weeks, Tencent and CATL's investment amounts revealed

According to sources familiar with the matter cited by Reuters, the first-round funding amount for the Chinese artificial intelligence startup DeepSeek has been set at around 50 billion Chinese Yuan (approximately $7.4 billion), adjusted from the earlier rumored $10 billion in late May. The post-investment valuation is expected to be between 350 billion and 400 billion Chinese Yuan (approximately $52 billion to $59 billion), raising the valuation cap from the previous rumored $55 billion by the end of May.

In terms of the specific capital structure, the financing demonstrates a founder-led characteristic. DeepSeek's founder, Wenfeng Liang, has committed a personal investment of 20 billion Chinese Yuan, accounting for 40% of the total funding amount to ensure the entrepreneurial team's absolute control of the company. At the same time, Tencent's and CATL's investment amounts have been revealed for the first time, with Tencent considering an investment of 10 billion Chinese Yuan and CATL intending to invest 5 billion Chinese Yuan, making them potentially the largest external investors in the funding round. There were previous rumors that the National Artificial Intelligence Industry Investment Fund would lead the investment, but with the founder's substantial personal investment established, the national fund has stepped back to become a regular participating external institution. DeepSeek is also in final investment negotiation with Netease and JD.com, with the total number of investors expected to be fewer than 10.

The current funding round is expected to be completed within the next two weeks. In addition to the disclosed investors, Hong Kong-based IDG Capital and Monolith Capital have also emerged as potential investors. DeepSeek has not made any statement regarding its future Initial Public Offering (IPO) plans.