DeepSeek Nears $12 Billion Funding Round as IPO Plans Take Shape

DeepSeek is close to securing at least 80 billion yuan, or roughly $12 billion, in new funding as investor interest in China’s artificial intelligence sector continues to grow. The round could ultimately approach 100 billion yuan, according to people familiar with the discussions, significantly exceeding DeepSeek’s initial target of about 50 billion yuan. Major investors reportedly include Chinese technology giant Tencent and battery manufacturer CATL.

The fundraising comes as DeepSeek prepares for a possible initial public offering on Shanghai’s technology-focused STAR Market. The company has already hired CITIC Securities to work on preparations for a potential listing, according to Reuters. DeepSeek is reportedly aiming to begin the IPO process, although the exact timing, size and final valuation of the offering have not been determined. Earlier reports placed the company’s potential valuation around 500 billion yuan, or approximately $74–75 billion.

The additional capital would give DeepSeek more resources to develop increasingly powerful AI models, expand computing infrastructure and compete for highly skilled researchers and engineers. The company faces intense competition from both Chinese and US AI developers, while advanced AI development requires enormous amounts of computing power and data-centre capacity. DeepSeek has also been working with Huawei on software tools optimized for the company’s Ascend AI chips, reflecting China’s broader push to reduce reliance on Nvidia’s AI hardware ecosystem.

DeepSeek has become one of China’s most prominent AI companies after its models gained international attention for delivering competitive performance while emphasizing efficiency and open-weight development. The company recently introduced its DeepSeek-V4.1-Flash model as it continues expanding its AI portfolio. Its growing investor base and ability to attract billions of dollars demonstrate how strategically important Chinese AI companies have become as Beijing seeks greater technological independence from the United States.

If completed, the fundraising would be one of the largest private capital raises involving a Chinese AI company and would significantly strengthen DeepSeek’s position ahead of a potential public listing. However, an IPO is not yet confirmed, and the reported funding and valuation figures remain subject to change before the round closes. The company’s next steps will be closely watched as Chinese AI firms increasingly turn to public markets to finance the enormous costs of competing in the global artificial intelligence race.