DeepSeek, the Chinese artificial intelligence (AI) company, is close to raising at least 80 billion yuan (approx.$12 billion) in a funding round backed by Tencent Holdings (HKG:0700, OTC:TCEHY) and Contemporary Amperex Technology (CATL).
The financing would value DeepSeek at a minimum of about $75 billion and could reach almost $15 billion if the final total approaches 100 billion yuan, Bloomberg reported on Tuesday, citing people familiar with the matter.
DeepSeek had initially targeted 50 billion yuan (about $7.5 billion), but investor demand increased after the launch of its latest AI model, pushing commitments beyond the original goal.
Tencent, the Chinese technology group that operates WeChat, and CATL, the world's largest electric vehicle battery maker, have committed some of the largest amounts in the latest financing round.
The fundraising marks a sharp increase from DeepSeek's initial target and would provide the company with substantial capital to expand its artificial intelligence capabilities and computing infrastructure.
The company plans to restructure after the funding round as it prepares for an initial public offering in early 2027, according to Bloomberg's sources.
The potential listing would give investors a route into one of China's most closely watched AI companies, which gained global attention after releasing its R1 model in early 2025.
DeepSeek's latest financing follows its first major external funding round earlier this year, which raised about $7.4 billion and valued the company at between $52 billion and $59 billion.
The latest round could become significantly larger, with signed term sheets indicating that total funding could approach $15 billion.
DeepSeek has also been expanding its computing infrastructure as Chinese AI companies seek greater access to domestic hardware and reduce reliance on US chip suppliers.
The fundraising comes as Chinese technology companies accelerate investment in AI, with Tencent seeking to incorporate AI capabilities across its products and services.
If completed, the funding would put DeepSeek among the world's most highly valued private AI companies and set the stage for a closely watched public market debut in 2027.
