China’s Chip Investment Fund Leads DeepSeek Funding Round

China’s chip investment fund negotiating to spearhead DeepSeek’s funding round: FT

Last updated on May 6, 2026May 6, 2026 by Liam Pullman on Categories Business

China’s Investment Fund Eyes DeepSeek Valuation

Published Wed, May 6, 2026 · 03:24 PM

[HONG KONG] The China Integrated Circuit Industry Investment Fund, the country’s principal chip-sector investment entity, is reportedly negotiating to spearhead a funding round for DeepSeek, anticipating a valuation in the vicinity of US$45 billion, according to the Financial Times, citing sources familiar with the discussions.

The Big Fund, as it is colloquially known, aims to take a leading role in this financing effort. However, specifics regarding the round and its participants remain undisclosed.

This state-backed initiative is a crucial supporter of some of the nation’s most prominent chip manufacturers, including Semiconductor Manufacturing International Corp.

The potential involvement of this state entity accentuates Beijing’s commitment to the ambitious financing of the nation’s most notable AI startup.

The Big Fund acts as a pivotal force in China’s quest to cultivate alternatives to U.S. technologies, such as Nvidia’s AI accelerators.

Notably, DeepSeek recently emphasized its compatibility with AI chips developed by domestic powerhouse Huawei Technologies during the launch of its latest V4 model.

Furthermore, the startup is currently engaged in financing discussions with leading tech titans in the country.

Reports from Bloomberg News indicate that Tencent Holdings and Alibaba Group Holding are also contemplating participation in DeepSeek’s inaugural external financing round, targeting a valuation of approximately US$40 billion.

Founded by Liang Wenfeng in 2023, DeepSeek is a venture backed by hedge fund Zhejiang High-Flyer Asset Management.

The company made waves in January 2025 with a groundbreaking AI model that delivered performance levels rivaling international competitors, despite China’s constrained access to top-tier global talent and advanced semiconductor technology.

In a bid to innovate, DeepSeek is venturing into the realm of agentic AI, spurred by the advent of OpenClaw, and riding a surging wave of interest in software capable of executing tasks autonomously.

A person in a hoodie uses a laptop in an office with large screens displaying the word SOFTWARE and coding data.

The Chinese startup has actively posted over a dozen job openings for roles related to agentic AI as of March.

Like many emergent companies, it is navigating the complexities of raising capital and forming strategic partnerships to secure the essential computing power that data center leaders like Alibaba and Tencent can provide, facilitating its expansion into novel domains.

Source link: Businesstimes.com.sg.

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Liam Pullman

I'm Liam, a Senior Business Associate and Content Manager at RSWEBSOLS. I hold an MBA and have over a decade of experience in the online business space, including blogging, eCommerce, career growth, and business strategies, sharing practical insights to help businesses and professionals grow online.