DeepSeek Hits $45B Valuation as China's Big Fund Leads First External Round

DeepSeek, the Chinese AI lab behind the disruptive open-source model series, has seen its valuation skyrocket to approximately $45 billion as it secures its first external funding round. The round is led by China's state-backed National Integrated Circuit Industry Investment Fund, commonly known as the 'Big Fund,' and includes tech giants Tencent Holdings and Alibaba Group. This marks a dramatic increase from the roughly $20 billion valuation the company was pegged at just weeks ago. Founder Liang Wenfeng, who controls about 89.5% of the company through direct and indirect holdings, is expected to participate personally. Previously, DeepSeek relied entirely on internal funding from its parent company Huanfang Quantitative, a quantitative hedge fund. The decision to seek external capital comes amid pressure from competitors poaching its researchers and the need to build a robust application ecosystem around its models. The company aims to offer employee shares to retain top talent and deepen collaboration with strategic partners like Tencent.

Just weeks ago, on April 24, DeepSeek launched its V4 model preview, featuring a breakthrough attention mechanism and world-leading long-context processing capabilities. The model is optimized to run on domestic hardware, including AI chips made by Huawei Technologies, aligning with China's broader push for technological self-reliance amid U.S. export controls. The Big Fund's potential involvement marks a significant expansion of its investment scope. Historically focused on semiconductor manufacturing, chip design, and equipment—backing industry giants like SMIC—the fund has not previously invested in large language model developers. This investment signals tighter integration between China's chip ecosystem and AI model builders under Beijing's strategic vision. Some valuation estimates have reportedly reached as high as $50 billion, with the company targeting a raise of $3 billion to $4 billion to boost its computing power and enhance employee welfare. DeepSeek is positioning itself as China's homegrown AI champion to challenge OpenAI and Anthropic.