DeepSeek Nears Raising 80 Billion Yuan with Commitments from Tencent and CATL

Chinese AI company DeepSeek is close to securing 80 billion yuan, or about $11.9 billion, in its latest funding round, according to Bloomberg as reported by Reuters. The amount exceeds an original target set at 50 billion yuan, meaning the round has surpassed its stated goal by more than half.

Tencent Holdings and battery maker CATL are pledging some of the largest amounts in the round, in a move that strengthens the alliance of Chinese technology and industrial companies around the domestic AI sector. Battery manufacturer CATL adds an industrial dimension to the round that goes beyond mere financial investment.

Bloomberg reported that the final figure could reach 100 billion yuan, and that the company expects to close the round during October. Both investors declined to comment immediately on the news when asked, leaving the door open for numbers to change before final agreements are signed.

The round was launched last July, targeting a valuation of 500 billion yuan. The growing demand for DeepSeek shares reflects its rising position in the open-source model race and its widespread adoption at low costs. The round is seen as an indicator of Chinese companies' ability to raise massive capital from domestic investors, coming at a time of intensifying competition for advanced models between Chinese and American firms.

What do these terms mean?

Yuan: The official currency of China, represented by the code CNY.

Funding round: A stage in which a venture raises capital from investors in exchange for an equity stake.

Valuation: The estimated total market value of the company upon completion of financing.

Strategic investor: A company that invests in a venture not only for financial return, but also for an industrial or technological partnership.