• DeepSeek is seeking to raise up to 50 billion yuan in a new funding round, with strong participation from state-backed and major financial investors, signaling government support for domestic AI champions.
  • The Chinese AI startup plans to release an update to its V4 model in June, featuring a Mixture-of-Experts architecture with improved efficiency and extended context windows.
  • The fundraising and product rollout come amid Beijing's push for technological self-reliance, positioning DeepSeek as a key player in China's AI landscape.

DeepSeek, the Chinese artificial intelligence startup, is aiming to raise as much as 50 billion yuan ($6.9 billion) in a funding round that has attracted significant interest from state-backed and major financial investors, according to people familiar with the matter. The move aligns with Beijing's strategic push to build domestic AI capabilities and reduce reliance on foreign technology.

The company also plans to release an update to its V4 model in June, following a preview earlier this year. The V4 model employs a Mixture-of-Experts architecture with two weight sets—a pro-level version and a lightweight variant—and supports context windows of around 1 million tokens. The update is expected to emphasize efficiency, with lower FLOPs and memory use per token, and ecosystem readiness through public demos and API access.

“This fundraising reflects the strong alignment between DeepSeek's ambitions and national goals for AI self-sufficiency,” said an analyst familiar with the matter, who declined to be named. “State-backed investors are increasingly channeling capital into domestic champions.”

DeepSeek's valuation has been a subject of market chatter, with reports placing it in the tens of billions of dollars. The funding round comes amid a broader wave of AI investment in China, where government funds are fostering homegrown technology to compete globally. Competition from other large players could influence the terms and timing of both the fundraising and the V4 rollout.

The company has not officially commented on the funding or the model update. Attempts to reach DeepSeek for comment were unsuccessful.

Correction: An earlier version of this article misstated the amount DeepSeek is aiming to raise. The correct figure is up to 50 billion yuan.