DeepSeek V4 Slashes Prices Permanently; CATL, JD, NetEase Rush to Invest; Liang Wenfeng: Goal is AGI

DeepSeek made two major announcements on the same day, signaling both rapid growth and strategic backing from major industry players.

First, DeepSeek-V4-Pro API announced a permanent price reduction. Starting June 1, the API pricing will be permanently set at the current promotional level, with no plan to revert to the original rates. The new prices are: input cache hit at 0.025 RMB per million tokens, cache miss at 3 RMB, and output at 6 RMB—all one-quarter of the original pricing.

Second, The Information reported that CATL (Contemporary Amperex Technology Co.) is in talks to invest in DeepSeek's first external funding round. CATL, the world's largest electric vehicle battery manufacturer, has been expanding into data center energy storage. Earlier this month, a CATL affiliate announced a $942 million acquisition of a 38.1% stake in VNET Group, a leading Chinese data center operator. CATL also invested in Zhongheng Electric, which specializes in data center power supply systems. These moves indicate that CATL sees data centers as its next major battlefield, and DeepSeek, as a rapidly growing energy consumer, represents a strategic downstream customer. Additionally, data centers face increasingly stringent green energy requirements, and DeepSeek's planned data center in Inner Mongolia—chosen for its abundant electricity and low temperatures—will naturally need wind and solar energy storage systems, which align with CATL's core products.

Beyond CATL, sources indicate that JD.com and NetEase are also in talks to participate in this funding round, though details remain unconfirmed. None of the three companies have publicly confirmed the investments, and DeepSeek and CATL have responded with "no comment on market rumors."

The funding round has escalated rapidly over the past month. Initial reports suggested a valuation over $10 billion, then a 50 billion RMB fundraising target, and now Bloomberg reports approximately 70 billion RMB ($10 billion) with a pre-money valuation of about $45 billion. If finalized, it could become the largest funding round ever for a Chinese AI company. Confirmed investors reportedly include the National AI Industry Investment Fund (about 10 billion RMB), Tencent, IDG Capital, and Monolith Capital. Founder Liang Wenfeng himself will contribute the largest share, about 20 billion RMB. The round could close as early as June.

In investor meetings, Liang Wenfeng has made clear that DeepSeek's primary goal is pushing technological boundaries, not monetization. He reiterated the commitment to developing open-source models and pursuing the larger goal of AGI. This philosophy aligns with the company's pricing strategy: Liang previously stated that DeepSeek prices based on cost without subsidizing or profiteering, and believes AI should be affordable for everyone.

DeepSeek, founded three years ago, is accepting external capital for the first time. Its open-source models have allowed global developers free access to world-class AI, and its API prices have continually dropped—now permanently. But maintaining this comes at a rising cost. With battery giant, e-commerce, and gaming companies now circling, the outcome of DeepSeek's funding round will be closely watched.