DeepSeek Founder Invests Billions Amid Alibaba Talks | Generated by AI
Question: What is the latest news about DeepSeek’s funding round — specifically that Liang Wenfeng broke ties with Alibaba and is personally contributing 20 billion CNY while the company’s valuation reaches 350 billion CNY?
Answer:
DeepSeek’s Latest Funding Round: Liang Wenfeng Goes Big
The latest developments (as of May 9–10, 2026) confirm a dramatic shift in DeepSeek’s fundraising story.
The 350 Billion CNY (~$51.5B) Valuation
DeepSeek’s valuation has soared to $51.5 billion (approximately RMB 350 billion), positioning it to rival OpenAI and Anthropic in the global AI race.
Liang Wenfeng’s Personal 20 Billion CNY Contribution
Founder Liang Wenfeng is personally contributing 40% — approximately RMB 20 billion — of the total funding round, which targets RMB 50 billion ($7.3 billion). This is described as a rare move signaling a full-scale commitment to scaling DeepSeek.
Liang Wenfeng is planning to write the biggest check in DeepSeek’s first-ever funding round, which the company now hopes will raise up to 50 billion yuan ($7.35 billion).
What About Alibaba?
Regarding “breaking up” with Alibaba specifically — the search results do not confirm an explicit break. However, the context suggests Liang has historically been very reluctant to let big tech firms in. Liang Wenfeng had long kept a host of industry giants and VCs at bay, and had previously declined investment intentions from giants like Tencent and Alibaba, with the simple reason that capital would interfere with technological decision-making.
Tencent has proposed acquiring up to a 20% stake in DeepSeek as part of the financing round, though the startup is reluctant to relinquish that level of control. Alibaba is also engaged in funding discussions, but it remains unclear what terms the e-commerce company is proposing.
By personally investing 20 billion CNY, Liang is ensuring he remains in firm control — structurally sidelining large stakeholders like Alibaba from taking a dominant position.
Founder Control Strategy
Liang Wenfeng sharply increased his subscribed capital from CNY 100,000 to CNY 5.1 million, raising his personal stake from 1% to 34%. Under China’s Company Law, a stake above one-third (33.34%) can block special resolutions by preventing the required two-thirds approval, giving Liang veto power over major decisions including charter changes, capital adjustments, mergers, and dissolution.
What’s Driving This Pivot?
Previously funded through his hedge fund High-Flyer Quant, DeepSeek had operated like a research lab. This personal investment marks a pivot to aggressive commercialization and global expansion. DeepSeek’s valuation jumped 5x — from $10B to $51.5B — in just one month, reflecting intense investor confidence in its efficiency-first AI architecture.
Summary Table
| Item | Detail |
|---|---|
| Valuation | ~RMB 350 billion (~$51.5B USD) |
| Total Round Size | RMB 50 billion (~$7.35B USD) |
| Liang’s Personal Contribution | ~RMB 20 billion (40% of round) |
| Lead State Investor | China’s National AI & Big Fund |
| Status of Alibaba/Tencent | In talks, but Liang resisting high-stake deals |
References:
- KAD – DeepSeek Raises $7.3B at RMB 350B Valuation
- The Information – DeepSeek To Raise More than $7 Billion
- 36Kr – $20 Billion: DeepSeek Aims for More Than Money
- IndexBox – Tencent and Alibaba in Talks to Invest in DeepSeek
- DigiTimes – DeepSeek lifts capital by 50%