DeepSeek Seeks 50 Billion Yuan From Tencent, CATL

Chinese artificial intelligence startup DeepSeek is seeking to raise 50 billion yuan ($6.9 billion) from investors including Tencent Holdings Ltd. and battery maker CATL, Reuters and Cailian reported on June 3.

Reuters, citing unnamed people familiar with the matter, reported that founder Liang Wenfeng is discussing a 20 billion yuan ($2.8 billion) investment of his own money. Tencent is weighing a 10 billion yuan ($1.4 billion) investment, while CATL is considering 5 billion yuan ($690 million). If completed, the deal would make Tencent and CATL DeepSeek's largest external investors. The funding round would value DeepSeek at 350 billion yuan to 400 billion yuan, or about $48.3 billion to $55.2 billion.

China's state-backed AI industry investment fund is also considering participating, along with game developer NetEase Inc. and e-commerce company JD.com Inc., the reports said.

DeepSeek, Tencent and CATL declined to comment.

DeepSeek drew global attention in January 2025 with its low-cost AI model R1. In April 2026, it unveiled V4, a new AI model optimized for Huawei Technologies Co.'s Ascend chips.

The companies linked to a potential investment in DeepSeek span AI models, energy and infrastructure, underscoring Beijing's broad support for the sector. At a Chinese Communist Party Politburo meeting in late April 2026, the party identified AI as a key tool for economic stimulus and technology security.

Lee Mi-a, Hankyung.com reporter, mia@hankyung.com