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DeepSeek Raises Funds From Chinese State Investors at Valuation Up to $50 Billion
Hangzhou-based AI lab DeepSeek is nearing the close of its debut external financing round, with a group of state-linked investors participating. The China Integrated Circuit Industry Investment Fund’s AI-focused affiliates under Big Fund III are backing the deal alongside Tencent Holdings and global firm Hillhouse. The valuation has risen from an initial US$10 billion reported last month.
May 8, 9:06 AM·1m read1 source
South China Morning PostAudio version
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DeepSeek is expected to close its first external financing round soon, boosting its valuation to up to US$50 billion, according to three people familiar with the matter. The round is being backed by a group of state-linked investors, including AI-focused affiliates under the third phase of the China Integrated Circuit Industry Investment Fund, known as Big Fund III.
Global investment firm Hillhouse was involved in the funding discussions while Shenzhen-based Tencent Holdings took part in the round.
The final valuation could still change as talks were ongoing, the people said. Local media outlets reported last month that DeepSeek started the funding round at an initial valuation of US$10 billion. The latest figure represents a fivefold increase and reflects the interest of some of China’s largest state-backed investors.
DeepSeek is a Hangzhou-based frontier AI lab. U.S. and China for AI leadership.
DeepSeek did not immediately respond to a request for comment.
The article was published on 8 May 2026.
