Chinese AI Startup DeepSeek Valued at Rp 929 Trillion After First External Funding Round

Chinese artificial intelligence startup DeepSeek is estimated to have a valuation of around 350.88 billion yuan, or approximately Rp 929 trillion. The figure emerged after an investment fund poured 2.9 billion yuan into acquiring an indirect stake in the company. Chinese luggage manufacturer Anhui Korrun disclosed in a stock exchange filing on Thursday that a fund it invested in had acquired a 0.8265% indirect stake in DeepSeek. The transaction value implies a valuation for DeepSeek of approximately 350.88 billion yuan. The disclosure provides a rare piece of public evidence regarding the pricing and investor list in DeepSeek’s first external funding round. The Hangzhou-based AI startup had never previously announced the fundraising. As a private company, DeepSeek is not required to make routine information disclosures. DeepSeek also did not immediately respond to a request for comment. DeepSeek first captured global attention early last year after its low-cost AI models, V3 and R1, challenged the assumption that China was struggling to compete with leading US AI firms. This development occurred amid Washington’s restrictions on advanced chip exports to China. DeepSeek had long refused external funding, relying instead on High-Flyer, a quantitative hedge fund owned by its founder Liang Wenfeng. However, Reuters reported in May that DeepSeek changed this strategy to fund increased computing capacity and improve employee benefits. Reuters also reported in June that DeepSeek plans to raise around 50 billion yuan, or approximately US$7.4 billion, from investors including Tencent and CATL. That fundraising could give DeepSeek a post-investment valuation in the range of 350 billion yuan to 400 billion yuan. In the stock exchange filing, Anhui Korrun stated its subsidiary, Ningbo Purun, invested 40 million yuan into Tianjin Lisi Xingling Venture Capital Partnership. The fund is managed by Chinese investment firm Monolith Management. The 2.9 billion yuan investment fund then acquired a 0.8265% indirect stake in DeepSeek, giving Anhui Korrun an indirect ownership of 0.0114%. Investors completed payments by 17 June, and Anhui Korrun was informed on 15 July that the investment had been finalised. In a separate transaction, Jiuan Medical disclosed that its Hong Kong subsidiary invested 750 million yuan through investment vehicle Shixiang Capital, securing an indirect stake of approximately 0.21% in DeepSeek. The filings did not specify whether the investments involved the issuance of new shares, the purchase of existing shares, or different rights. Consequently, the 350.88 billion yuan figure represents an implied equity valuation from the transaction rather than a definitive valuation for DeepSeek’s entire funding round. Reuters reported that DeepSeek is planning a subsequent funding round of up to 50 billion yuan, which could bring the company’s valuation to around 500 billion yuan. The plan emerged just weeks after DeepSeek completed its first external funding round. DeepSeek is also preparing for a listing on the Shanghai STAR Market and is targeting an initial public offering filing this year, according to sources familiar with the matter. These plans underscore the escalating costs of competing in the AI field, which demands significant expenditure on chips, data centres, and talent.