Good summary:

https://xcancel.com/jukan05/status/2066752564809605584

DeepSeek Completes First External Funding Round, Raising $7.4 Billion

- DeepSeek has completed its first external fundraising round, raising more than RMB 50 billion (approximately $7.4 billion). The company was reportedly valued at over $50 billion.

- Investors are investing through a limited partnership (LP) managed by CEO Liang Wenfeng, rather than directly into DeepSeek itself. This structure allows Liang [CEO/founder] to maintain absolute control over the company.

- The China National AI Industry Investment Fund is the sole exception, investing directly in DeepSeek and receiving voting rights. The fund has committed RMB 1 billion.

- Ordinary investors receive no voting rights, but gain access to financial information and priority rights in future financing rounds. All investor stakes are subject to a five-year lock-up period, designed to discourage short-term profit-taking.

- Major investors include Liang Wenfeng (RMB 20 billion), Tencent (RMB 10 billion), CATL (RMB 5 billion), JD.com, NetEase, and IDG Capital (RMB 3 billion each).

- DeepSeek’s management reportedly conducts *due diligence* on the identities of LPs backing investment funds, aiming to prevent the entry of unwanted investors.

- DeepSeek had previously operated without external funding, but rising compute costs and intensifying competition for AI talent have increased the need for capital.

How do they make so much money and still want to open-source??