Chinese AI startup DeepSeek is close to finalizing its first external funding round, according to multiple reports. The company is reportedly raising about 50 billion yuan (roughly $7.4 billion), in what outlets describe as one of China’s largest startup financings. Sources cited by Bloomberg and other outlets say investors expected to participate include Tencent Holdings and DeepSeek’s founder, and that the round is being lined up as DeepSeek moves from relying largely on internal resources to bringing in outside capital. Reuters-cited reporting included CATL, the battery maker, as another potential backer alongside Tencent and other investors. Several outlets also describe the potential valuation tied to the deal: the South China Morning Post says it is valued at just under $60 billion, while TechNode reports valuation expectations between 350 billion yuan and 400 billion yuan. One outlet notes this would represent a significant increase from DeepSeek’s earlier reported valuation in April. The reports present the financing as a major milestone for DeepSeek and for China’s domestic AI sector as investors seek funding to scale AI capabilities amid intense global competition.