DeepSeek seeks $70bn valuation after landmark Series A
Chinese AI firm DeepSeek is targeting a $70 billion valuation in a rapid follow-up funding round, underscoring fierce investor appetite to back a domestic AI champion.
DeepSeek has opened preliminary fundraising talks aimed at securing a $70 billion valuation. The move comes immediately after the Chinese artificial intelligence company closed a landmark Series A round, demonstrating the rapid pace of capital formation in the sector.
The swift succession of fundraising efforts highlights a bottleneck of institutional capital trying to access China's top-tier AI developers. The initial Series A was restricted to a select group of backers. This exclusivity left other investors eager to support a "national AI champion" and "still seeking ways to get involved," one of the sources said.
That prior round attracted a formidable roster of corporate and financial backers, illustrating broad strategic interest across the Chinese economy. Domestic tech giants Tencent Holdings, NetEase and JD.com all participated, signalling strong validation from the established internet sector. Crucially, the investor base extended well beyond traditional software and internet companies.
Contemporary Amperex Technology Ltd, known as CATL, the world’s largest electric-vehicle battery maker, also committed capital to the deal. This points to a belief that AI will reshape heavy industry and manufacturing supply chains. Venture capital firms Monolith, Loyal Valley Capital and Shixiang completed the syndicate for the initial round.
While the new round targets a massive valuation, a second source cautioned that the current discussions remain at a preliminary stage. The sources requested anonymity as they were discussing private information. The final valuation could still change as the fundraising process unfolds.
For market professionals, DeepSeek’s fundraising trajectory reflects a decisive consolidation of capital around a very small number of AI leaders in China. The cross-sector involvement of major industrial manufacturers like CATL signals that foundational AI models are increasingly viewed as critical general infrastructure. However, the rapid escalation directly into a follow-on round also illustrates the structural liquidity dynamics in private markets, where well-capitalised investors are willing to accept aggressive pricing to secure essential technology assets.
