DeepSeek Raises Nearly $15 Billion

Chinese AI startup DeepSeek has raised roughly 100 billion yuan ($14.98 billion) from more than 15 investors, according to a Reuters report citing four people familiar with the deal. Tencent, battery maker Contemporary Amperex Technology (CATL), automaker Geely, chipmaker GigaDevice and food delivery company Meituan were among the investors. The round values DeepSeek at about 500 billion yuan ($74 billion) before the new capital, with a potential post-money valuation near $89 billion. Final terms and investor commitments may change before the transaction closes in the coming days.

Bloomberg reported on October 6 that DeepSeek was close to raising at least 80 billion yuan ($12 billion), above its original 50 billion yuan target; sources said the round could reach 100 billion yuan ($15 billion) ahead of a potential IPO in early 2027. DeepSeek first sought 50 billion yuan, roughly $7.5 billion, but investor demand pushed the total to twice that amount. The reported financing follows its $7.4 billion inaugural external funding round in June. July investor filings put its valuation at approximately 350.88 billion yuan ($52 billion), while the latest reported pre-money valuation is substantially higher four months later.

Tencent, which operates WeChat, and CATL, one of the world’s largest electric-vehicle battery manufacturers, were among the biggest contributors and were already shareholders. Other participants included appliance maker Midea, gaming and internet company NetEase, private equity firm Boyu Capital, CPE, Legend Capital and IDG Capital. The article says that investors’ ties to chips, computing infrastructure, electricity and industry could provide relationships beyond financial backing. Omdia chief analyst Lian Jye Su told Reuters that the valuation reflected investor confidence in DeepSeek’s open-source strategy and that Chinese investors supplying critical components could make the company part of domestic technology supply chains.

DeepSeek drew international attention for AI models developed at costs that challenged assumptions about the spending required to compete with leading U.S. AI labs. It released DeepSeek-V4.1-Flash in September, promoting improvements in inference speed, throughput, model capabilities and scalability, and pursued closer integration with China’s domestic computing ecosystem, including work involving Huawei Ascend AI chips.

The financing comes amid investor concern about AI infrastructure costs, including data centers and specialized processors, which the article says contributed to technology stock selloffs and weaker demand for some AI-related public offerings. Shares of Hong Kong-listed AI companies Z.AI and MiniMax had fallen sharply from earlier peaks. Reuters reported in September that DeepSeek had hired CITIC Securities to advise on a possible IPO on Shanghai’s STAR Market, which focuses on science and technology companies. DeepSeek has not announced a final IPO date, offering size or public valuation. The article says the new capital could give the company room to develop models, expand computing capacity and strengthen its position before a possible public listing. It describes DeepSeek as a focal point for China’s effort to reduce dependence on foreign chips, cloud infrastructure and proprietary AI systems, while saying whether the funding can support a sustainable business remains an open question.

Chinese AI startup DeepSeek has raised roughly 100 billion yuan ($14.98 billion) from more than 15 investors, according to a Reuters report citing four people familiar with the deal. Tencent, battery maker Contemporary Amperex Technology (CATL), automaker Geely, chipmaker GigaDevice and food delivery company Meituan were among the investors. The round values DeepSeek at about 500 billion yuan ($74 billion) before the new capital, with a potential post-money valuation near $89 billion. Final terms and investor commitments may change before the transaction closes in the coming days.

Bloomberg reported on October 6 that DeepSeek was close to raising at least 80 billion yuan ($12 billion), above its original 50 billion yuan target; sources said the round could reach 100 billion yuan ($15 billion) ahead of a potential IPO in early 2027. DeepSeek first sought 50 billion yuan, roughly $7.5 billion, but investor demand pushed the total to twice that amount. The reported financing follows its $7.4 billion inaugural external funding round in June. July investor filings put its valuation at approximately 350.88 billion yuan ($52 billion), while the latest reported pre-money valuation is substantially higher four months later.

Tencent, which operates WeChat, and CATL, one of the world’s largest electric-vehicle battery manufacturers, were among the biggest contributors and were already shareholders. Other participants included appliance maker Midea, gaming and internet company NetEase, private equity firm Boyu Capital, CPE, Legend Capital and IDG Capital. The article says that investors’ ties to chips, computing infrastructure, electricity and industry could provide relationships beyond financial backing. Omdia chief analyst Lian Jye Su told Reuters that the valuation reflected investor confidence in DeepSeek’s open-source strategy and that Chinese investors supplying critical components could make the company part of domestic technology supply chains.

DeepSeek drew international attention for AI models developed at costs that challenged assumptions about the spending required to compete with leading U.S. AI labs. It released DeepSeek-V4.1-Flash in September, promoting improvements in inference speed, throughput, model capabilities and scalability, and pursued closer integration with China’s domestic computing ecosystem, including work involving Huawei Ascend AI chips.

The financing comes amid investor concern about AI infrastructure costs, including data centers and specialized processors, which the article says contributed to technology stock selloffs and weaker demand for some AI-related public offerings. Shares of Hong Kong-listed AI companies Z.AI and MiniMax had fallen sharply from earlier peaks. Reuters reported in September that DeepSeek had hired CITIC Securities to advise on a possible IPO on Shanghai’s STAR Market, which focuses on science and technology companies. DeepSeek has not announced a final IPO date, offering size or public valuation. The article says the new capital could give the company room to develop models, expand computing capacity and strengthen its position before a possible public listing. It describes DeepSeek as a focal point for China’s effort to reduce dependence on foreign chips, cloud infrastructure and proprietary AI systems, while saying whether the funding can support a sustainable business remains an open question.