Bottom Line
China National Integrated Circuit Industry Investment Fund (commonly known as the “Big Fund”) is in talks to lead a new round of investment in DeepSeek, with the valuation approaching $45 billion. Just weeks ago, DeepSeek’s valuation was around $20 billion — meaning it has more than doubled in roughly a month.
Core Signal: This is not a routine commercial financing. The Big Fund publicly investing in a domestic LLM company for the first time is equivalent to placing AI models in the same strategic tier as semiconductors — enjoying equal national priority.
Deal Details
| Dimension | Information |
|---|---|
| Lead Investor | National Integrated Circuit Industry Investment Fund (Big Fund) |
| Potential Co-Investor | Tencent (interested, not confirmed) |
| Valuation | Approaching $45 billion |
| Founder | Liang Wenfeng |
| Financing Motive | Employee option pricing to prevent core talent poaching |
| Sources | Bloomberg + The Information (four informed sources) |
Why This Timing?
According to four informed sources, Liang Wenfeng initially only planned a symbolic financing round — aimed at pricing employee options to prevent core researchers from being poached by competitors offering sky-high compensation packages.
But the Big Fund’s entry completely changed the equation. What started as an “internal pricing exercise” has become a “national strategic investment” — a shift whose significance far exceeds the valuation itself.
Landscape Assessment
The Big Fund’s Strategic Logic
The Big Fund has historically invested in the semiconductor supply chain: chip design, manufacturing, packaging and testing. Now extending its reach to AI models sends several key signals:
- AI Models = Strategic Infrastructure: No longer a purely commercial track, but a national competitiveness factor on par with semiconductors
- Integrated Compute + Algorithm Play: The Big Fund invests in both chips and models, creating full-chain coverage from foundational compute to upper-layer applications
- Benchmarking the US Model: The US coordinates compute and algorithm policy through CHIPS Act + AI Executive Order; China is following a similar path
Valuation Comparison
| Company | Latest Valuation | Round | Key Investors |
|---|---|---|---|
| DeepSeek | ~$45 billion | New round | Big Fund (lead) |
| Kimi/Moonshot | ~$20 billion | New round | Meituan Dragon Ball Fund (lead) |
| Zhipu AI | ~$3 billion | Series C | Cumulative rounds |
| Baichuan | ~$2 billion | Series B | Cumulative rounds |
DeepSeek’s valuation is now more than double Kimi’s, and on par with Baidu’s current market cap (approximately $20-25 billion).
Action Recommendations
For Practitioners:
- The Big Fund’s entry means DeepSeek will have long-term, stable financial backing — near-term risk of “running out of cash” is minimal
- Joining DeepSeek or partnering with them is essentially riding the tailwind of national strategy
For Investors:
- The AI model track is moving from “blooming flowers” to “head concentration” — a $45B valuation shows capital is willing to pay a premium for efficiency-driven companies
- Watch for more model companies receiving similar national-level funding
For Entrepreneurs:
- If DeepSeek is integrated into the national strategic sequence, fundraising will become even harder for smaller model companies without state backing
- A differentiated route (vertical domains, specific scenarios) may be the more pragmatic choice