AI Startup DeepSeek Nears 100 Billion RMB Funding Round
AI startup DeepSeek is nearing completion of its second funding round, doubling its target to approximately 100 billion RMB while keeping its pre-money valuation at roughly 500 billion RMB. This massive funding round highlights strong investor confidence in domestic AI foundational models and signals DeepSeek's strategic push to secure industrial supply chain backing ahead of an anticipated IPO. New industrial investors such as stone-related and semiconductor-focused funds, along with automaker Geely, have joined the round, while early backer Contemporary Amperex Technology (CATL) increased its investment by about 10 billion RMB.
## BACKGROUND
Pre-money valuation refers to the estimated value of a startup prior to a round of financing, which determines the equity stake new investors receive for their capital. DeepSeek was founded by quantitative hedge fund Hangzhou High-Flyer and has quickly risen to prominence with its advanced large language models.