Chinese artificial intelligence (AI) startup DeepSeek is set to raise more than 80 billion yuan ($11.93 billion) in its latest funding round, as the company builds a large capital war chest ahead of a potential domestic initial public offering (IPO).
The fundraising highlights the growing investor interest in Chinese AI companies as Beijing pushes for greater technological self-reliance and firms seek alternatives to US-developed AI infrastructure.
Credits: Yahoo Finance
DeepSeek Funding Round Draws Strong Investor Interest
DeepSeek began its latest fundraising effort in July with a target valuation of around 500 billion yuan ($74 billion). The company is now expected to raise significantly more capital than initially planned, according to people familiar with the matter.
One source said the latest round has attracted substantial interest from both existing and new investors. Capital commitments have already exceeded DeepSeek’s original target of 50 billion yuan, suggesting that demand for exposure to the AI startup remains strong.
DeepSeek is expected to complete the fundraising in October, according to two sources familiar with the matter. They declined to be identified because the details of the fundraising remain confidential.
Bloomberg separately reported on Tuesday that DeepSeek was close to securing at least 80 billion yuan in the round. The final amount could potentially reach 100 billion yuan, according to its sources.
The scale of the fundraising would make it one of the largest private capital raises involving a Chinese AI company, underscoring the sector’s strategic importance as competition in AI intensifies globally.
CATL and Tencent Among Major Investors
Chinese battery manufacturer CATL and technology giant Tencent Holdings are among the investors that have committed some of the largest amounts in the latest funding round, Bloomberg reported.
The involvement of major Chinese companies highlights the broader corporate push to support the country’s domestic AI ecosystem. Tencent operates one of China’s largest technology platforms, while CATL is a global leader in electric vehicle batteries and energy technology.
Neither Tencent nor CATL immediately responded to requests for comment.
DeepSeek also did not immediately respond to an emailed request for comment regarding the fundraising.
The company’s ability to attract both strategic corporate investors and financial backers could provide it with substantial resources to expand its computing infrastructure, develop new AI models and compete with leading AI companies in China and overseas.
DeepSeek Pushes Further Into Domestic AI Ecosystem
DeepSeek’s fundraising comes as the company becomes increasingly involved in China’s efforts to reduce dependence on US technology.
In September, DeepSeek partnered with Huawei Technologies to develop programming tools optimised for Huawei’s Ascend AI chips. The initiative is aimed at making DeepSeek’s AI software work more effectively with domestic computing hardware.
The partnership is particularly significant because Nvidia’s GPUs have played a central role in the global AI boom. US restrictions on advanced semiconductor exports to China have increased pressure on Chinese technology companies to develop alternative hardware and software ecosystems.
DeepSeek’s work with Huawei therefore reflects a wider effort to build an AI stack that can operate with less reliance on Nvidia’s technology.
New AI Model Strengthens DeepSeek’s Position
DeepSeek has also continued expanding its AI model portfolio.
Last month, the company launched DeepSeek-V4.1-Flash, describing it as a model designed to deliver greater capabilities while improving inference speed, throughput and scalability.
The focus on faster inference and higher throughput comes as AI companies increasingly compete not only on model intelligence but also on the cost and speed of deploying those models at scale.
For DeepSeek, continued model development will require significant computing resources. The latest funding could therefore give the company greater flexibility to invest in infrastructure, research and talent as competition intensifies.
Credits: WTVB
Potential STAR Market IPO Ahead
DeepSeek’s fundraising is also closely linked to its plans for a potential domestic listing.
Reuters reported last month that the company had hired CITIC Securities to prepare for a possible initial public offering on China’s STAR Market, which focuses on technology and innovation-driven companies.
However, the timing, valuation and size of any IPO have yet to be decided.
A successful funding round of more than 80 billion yuan could strengthen DeepSeek’s position ahead of such a listing by giving the company additional capital and potentially providing a benchmark for its valuation.
The fundraising also signals how quickly China’s AI investment landscape is developing. With major companies committing billions of yuan and DeepSeek continuing to expand its models and domestic technology partnerships, the startup is positioning itself for the next stage of China’s AI race.
