DeepSeek is close to finalizing a deal to raise about 50 billion yuan ($7.4 billion) from investors including Tencent Holdings Ltd. and its own founder in one of China’s largest startup financings, a milestone for a domestic AI industry seeking capital to take on marquee US names like OpenAI.

Vast, a 3D-modeling startup founded by a 29-year-old gamer, raised nearly $200 million to become the latest Chinese AI outfit to achieve a valuation of $1 billion.