Chinese battery manufacturer CATL is in discussions to participate in the ongoing initial funding round for AI startup DeepSeek, according to a report from The Information. The funding round aims to raise approximately 50 billion yuan and could close as early as June. If successful, DeepSeek’s valuation may exceed 350 billion yuan.
CATL’s reported investment aligns with its strategic shift toward supporting power-hungry AI data centers. The company aims to supply energy storage and power equipment to meet the growing electricity demands driven by advanced computing workloads.
In addition to CATL, several major Chinese technology firms are reportedly exploring stakes in DeepSeek. JD.com and NetEase have held discussions, while Tencent and Alibaba are also said to be in talks. State-backed semiconductor investors are understood to be in negotiations to lead the funding round, which could value the AI lab at around $45 billion, according to a Financial Times report.
DeepSeek first gained international attention in January 2025 with the release of its open-source large language model R1, which was trained at a fraction of the cost incurred by competing models overseas. In its latest V4 iteration, the company optimized performance for Huawei’s Ascend 950PR chips, reflecting a broader industry trend of integrated software and hardware development.
To support its expanding AI operations, DeepSeek plans to build a large-scale data center in Ulanqab, Inner Mongolia. The site’s low temperatures and abundant electricity supply are expected to improve power usage effectiveness by reducing cooling costs. The company has cited the need for dedicated infrastructure following a system outage that lasted nearly 12 hours last month.
DeepSeek is preparing to launch its next model update, V4.1, in June, accelerating its release cycle to keep pace with industry standards. The completion of this funding round would represent the largest financing event for a Chinese AI company to date and could significantly boost DeepSeek’s commercial growth trajectory.
Source: CNEV Post
