DeepSeek Raises Nearly $15 Billion as Chinese Investors Back AI Ambitions
DeepSeek reportedly raises nearly $15 billion as Chinese investors back its AI expansion.
Chinese artificial intelligence startup DeepSeek has reportedly raised around 100 billion yuan, or $14.98 billion, in its latest funding round. The investment includes major Chinese technology companies, manufacturers and financial investors, according to four people familiar with the matter.
The reported funding round includes chipmaker GigaDevice, food delivery company Meituan and automaker Geely. Battery manufacturer Contemporary Amperex Technology (CATL) and Tencent Holdings, the operator of WeChat, were among the largest investors, according to two sources.
Home appliance maker Midea and existing shareholder NetEase also participated. Other investors reportedly include Boyu Capital, CPE, Legend Capital and IDG Capital.
One source said the number of investors exceeded 15. However, the fundraising details and final investor lineup could still change before completion.
Funding Target Doubles Amid AI Competition
DeepSeek had initially targeted 50 billion yuan in fundraising. The reported 100 billion yuan total would double that target and highlight investor interest in China’s efforts to compete with the United States in artificial intelligence.
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Sources have put DeepSeek’s valuation at approximately 500 billion yuan before the latest investment. If confirmed, the funding would represent a major expansion of the company’s financial resources and its ability to develop advanced AI models.
Lian Jye Su, chief analyst at research firm Omdia, said the reported valuation reflected investor confidence in DeepSeek’s open-source strategy.
He also suggested that DeepSeek could become an important part of China’s domestic technology supply chains, given that its investors include companies supplying critical components.
DeepSeek could not immediately be reached for comment. Geely declined to comment, while the other companies named in the report did not immediately respond to requests for comment.
Investors Remain Cautious About AI Spending
DeepSeek’s fundraising comes as concerns grow over the enormous cost of developing and deploying artificial intelligence. Heavy AI spending has contributed to a selloff in global technology stocks this month.
Market uncertainty has also affected planned data centre initial public offerings and the performance of AI-related companies in South Korea and Hong Kong. Shares of Z.AI and MiniMax, two large language model developers listed in Hong Kong since January, have fallen sharply from their earlier peaks, Reuters reported.
Despite these concerns, DeepSeek’s latest funding round suggests that major investors remain willing to support companies they believe can strengthen China’s position in the AI industry.
DeepSeek Moves Closer to a Potential IPO
The reported funding could bring DeepSeek closer to accessing public markets. Reuters reported in September that the company aimed to begin its initial public offering process this year and had hired CITIC Securities to prepare for a potential listing on Shanghai’s STAR Market.
The Hangzhou-based company previously raised $7.4 billion in its first external funding round in June, according to Reuters. Filings by two Chinese investors in July suggested that the company was valued at 350.88 billion yuan, equivalent to approximately $52 billion, during that round.
DeepSeek also released its DeepSeek-V4.1-Flash model last month. The company said the model was designed to improve capabilities, accelerate inference, increase throughput and support larger-scale models.
The latest reported investment could provide additional resources for model development and infrastructure. However, the final fundraising amount, valuation and potential IPO plans remain subject to confirmation.
