DeepSeek, the Hangzhou‑based Chinese AI startup, is set to secure new funding that would value the company at $74 billion, according to people familiar with the matter. The firm aims to raise $7.4 billion to fuel research, development, and expansion into computing infrastructure, marking a step‑up from its previous $50 billion valuation in June. Existing shareholders—including Monolith Management, Shixiang, and Contemporary Amperex Technology—along with several Chinese local‑government‑backed funds, will inject capital, and the company will allow more direct investment this round.

DeepSeek’s annual recurring revenue has reached $500 million, a positive signal for its business model ahead of a planned Shanghai listing next year. The move reflects a broader capital‑raising rush across China’s AI sector, with peers like Moonshot AI and Alibaba also pursuing large funding rounds. DeepSeek gained global attention in early 2025 for a cost‑competitive AI model that rivals leading U.S. systems, and it remains among the cheapest providers despite recent price increases on its V4 models.