DeepSeek Set to Raise More Than $12 Billion in New Funding at $74 Billion Valuation

Chinese artificial intelligence startup DeepSeek is set to raise more than 80 billion yuan ($11.93 billion) in its latest funding round, with the financing potentially reaching about 100 billion yuan, as the company builds capital ahead of a possible domestic initial public offering, according to people familiar with the matter.

DeepSeek began the latest fundraising effort in July with a target of about 50 billion yuan and a valuation of roughly 500 billion yuan ($74 billion), Reuters reported. The fundraising has since attracted significant interest from existing and new investors, with committed capital exceeding the company's original target, according to a source cited by Reuters.

The final size of the round could approach 100 billion yuan, Bloomberg News reported, citing people familiar with the matter. The discussions were ongoing, and the final terms could still change.

Battery maker Contemporary Amperex Technology Co. Ltd., better known as CATL, and technology giant Tencent Holdings have committed some of the largest amounts in the latest financing, Bloomberg reported. Neither company immediately commented to Reuters on the report, while DeepSeek also did not immediately respond to a request for comment.

The latest funding would mark a significant expansion from DeepSeek's first external fundraising round, which raised about $7.4 billion only a month earlier, according to Reuters. The rapid pace of fundraising highlights the strong investor interest surrounding Chinese AI companies as competition in the sector intensifies.

DeepSeek's financing plans are also closely linked to its ambitions to expand computing infrastructure. The company is planning a large data center in Inner Mongolia and intends to deploy at least 160,000 of Huawei Technologies' advanced AI accelerators there, according to Bloomberg.

DeepSeek has also worked with Huawei on software designed to optimize programming for Huawei's Ascend AI chips. The partnership reflects the growing development of China's domestic AI computing ecosystem as Chinese companies seek alternatives to Nvidia's AI hardware, whose access in China has been affected by U.S. export restrictions.

The fundraising follows the release of DeepSeek's latest AI model, DeepSeek-V4.1-Flash. The company said the model was designed to provide greater capabilities, faster inference, higher throughput and the ability to scale to larger models, according to Reuters.

DeepSeek's growing valuation and funding needs come as Chinese technology companies compete for a larger share of the global AI market. The company gained international attention after the release of its R1 open-source model in early 2025, which drew attention for its performance and relatively low development and operating costs compared with some leading Western AI models.

The company is now also preparing for a potential listing in China's domestic capital markets. DeepSeek has hired CITIC Securities to advise on preparations for a possible initial public offering on the Shanghai Stock Exchange's STAR Market, Reuters reported last month. The timing, valuation and size of any future listing have not been finalized.

Tencent has previously been a major investor in DeepSeek and has sought to expand the use of artificial intelligence across its platforms and services. CATL, one of the world's largest electric-vehicle battery manufacturers, is also among the investors participating in the latest financing, according to Bloomberg.

The latest fundraising could give DeepSeek additional resources to expand its AI models, computing infrastructure and research capabilities. However, the financing remains subject to final negotiations, and the amount ultimately raised could differ from the figures reported by Bloomberg and Reuters.

DeepSeek, Tencent and CATL had not immediately responded to requests for comment on the reported financing as of the latest reports.