DeepSeek, the Hangzhou-based artificial intelligence startup, is close to finalising a funding round of about 50 billion yuan, or $7.4 billion, backed by Tencent Holdings and Contemporary Amperex Technology Co. Ltd. (CATL) as the two biggest investors, alongside the state-backed National Artificial Intelligence Industry Investment Fund. External investors are expected to put in around 30 billion yuan at a valuation of roughly 350 billion yuan, while DeepSeek founder Liang Wenfeng is personally investing about 20 billion yuan. Tencent is understood to be taking the largest single investment position, with about 10 billion yuan. Alibaba Group Holding was involved in early discussions but ultimately did not invest. The deal has not been publicly confirmed; Tencent and CATL declined to comment, while Alibaba and DeepSeek did not respond to requests for comment. DeepSeek built its reputation on technical breakthroughs and open-source AI models, including a 2025 model described as matching Silicon Valley capabilities at a fraction of the cost. Senior management has told potential investors the company will continue focusing on groundbreaking AI research, and Liang has pledged to keep developing open-source AI models while pursuing artificial general intelligence.