CATL to Anchor DeepSeek's $6.9B Round, Fueling China's AI Arms Race

Alex Nguyen

·May 26 2026, 01:53

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Key Takeaways

CATL, the world's largest EV battery maker, is set to be a lead investor in Chinese AI startup DeepSeek's latest funding round.
The deal is expected to raise RMB 50 billion ($6.9 billion) at a pre-money valuation of approximately $45 billion.
The funding round includes a mix of state-backed funds and tech giants, signaling a coordinated push in China's AI development.

Chinese AI startup DeepSeek is poised to close a RMB 50 billion ($6.9 billion) financing round with backing from battery giant Contemporary Amperex Technology Co. Limited (CATL), a deal that would value the firm at $45 billion and escalate the country's push to develop domestic AI champions.

The financing, which attracted strong investor interest, is anticipated to be completed as early as early June, according to people familiar with the matter cited by The Information and Bloomberg.

The round reportedly includes state-backed China National AI Industry Investment Fund, also known as Guozhi Investment, and tech incumbents like Tencent Holdings Ltd., IDG Capital, and Monolith Capital. NetEase Inc. and JD.com Inc. are also said to be in talks, highlighting the strategic importance of AI for a wide range of Chinese technology players.

For CATL, the investment marks a significant diversification beyond its core battery business and a strategic bet on the AI-powered future of industry. The massive funding round for DeepSeek intensifies the competitive landscape for AI in China, challenging established players like Alibaba Group Holding Ltd. and Baidu Inc. and potentially accelerating the race for AI supremacy.

This article is for informational purposes only and does not constitute investment advice.