DeepSeek close to sealing $7 billion funding in historic AI deal

DeepSeek is close to finalising a deal to raise about 50 billion yuan ($7.4 billion) from investors including Tencent Holdings Ltd. and its own founder in one of China’s largest startup financings, a milestone for a domestic AI industry seeking capital to take on marquee US names like OpenAI.

Social media giant Tencent and battery pioneer Contemporary Amperex Technology Co. Ltd. are the two biggest investors in a group that’s begun signing term sheets for the fundraising this week, according to people familiar with the matter. The state-backed National Artificial Intelligence Industry Investment Fund is also taking part, in a major endorsement from Beijing, said the people, asking not to be identified because the details are confidential.