DeepSeek has closed its second funding round, raising RMB 105.5 billion at a valuation of RMB 615.5 billion, with nearly 30 investors participating—among them Xiaohongshu. In recent years, Xiaohongshu has steadily ramped up its AI investments, having previously backed Moonshot AI's Kimi and MiniMax, thereby completing its investment footprint across China's leading large-model companies. In this round, state-owned capital's share climbed to 27%, with Tencent and CATL emerging as the two largest investors. Industrial capital from a range of sectors—chips, manufacturing, automakers, and the internet—joined alongside market-oriented funds. DeepSeek has set unusual investment thresholds: aside from the National Artificial Intelligence Industry Investment Fund, capital from other external investors must flow through a limited partnership managed by Liang Wenfeng, and investors are required to waive voting rights and commit to a five-year lock-up period. All parties are racing to get in on the deal, eager to seize the opportunities of the AI era.