What did DeepSeek just raise and at what valuation?

DeepSeek raised more than 50 billion yuan — roughly $7.4 billion — in its first-ever funding round, at a valuation exceeding $50 billion. That makes it China's most valuable AI startup, according to reporting by the Wall Street Journal.

The Hangzhou-based company is best known for its breakthrough reasoning model, built at a fraction of the cost of its Silicon Valley rivals. DeepSeek gained global attention early last year with its V3 and R1 models.

How is the DeepSeek funding deal structured?

The deal structure is unusual. Rather than investing directly in DeepSeek, investors put their capital into a limited partnership managed by CEO Liang Wenfeng, according to The Information as reported by Business Times.

Investors are subject to a five-year lock-up and will not have voting rights. The structure is designed to preserve founder control.

There is one exception. China's National Artificial Intelligence Industry Investment Fund invested directly in DeepSeek. It retains voting rights and is not subject to the lock-up.