DeepSeek Nears $12 Bn Funding Raise With Tencent Backing: Report

DeepSeek is close to securing at least 80 billion yuan ($12 billion) in its latest funding round, Bloomberg reported citing people familiar with the matter.

The fundraising would exceed the Chinese artificial intelligence company’s earlier funding target and comes ahead of a potential initial public offering in early 2027.

Battery maker Contemporary Amperex Technology (CATL) and Tencent Holdings are among the largest investors in the current round, Bloomberg reported. The final size and terms of the funding could still change, according to people familiar with the matter.

The funding follows DeepSeek’s first major external funding round earlier this year. Reuters reported in June that the company was on track to raise about 50 billion yuan ($7.4 billion), with Tencent and CATL among the investors.

That earlier round valued DeepSeek at between 350 billion yuan ($52 billion) and 400 billion yuan ($60 billion), according to Reuters. The company had previously relied largely on founder Liang Wenfeng’s quantitative investment firm, High-Flyer, to finance its operations.

DeepSeek is preparing for a market debut in early 2027. Reuters separately reported in September that the company had tapped CITIC Securities to prepare for a potential IPO on Shanghai’s technology-focused STAR Market, although the timing, size and valuation of the offering had not been determined.