DeepSeek Nears Raising 80 Billion Yuan with Support from Tencent and CATL
DeepSeek is on track to raise more than 80 billion yuan ($11.93 billion), surpassing an initial target of 50 billion yuan, with Tencent and CATL among the largest participants.
Chinese AI company DeepSeek is heading toward raising more than 80 billion yuan, equivalent to $11.93 billion, in a new funding round, according to informed sources cited by Reuters. The amount exceeds the initial target of 50 billion yuan and could reach 100 billion yuan, as reported by Bloomberg.
The round launched in July at a target valuation of 500 billion yuan, or around $74 billion, following an initial external round that raised about $7.4 billion a month prior. Sources said Tencent and battery maker CATL committed some of the largest amounts in the round, with the closing expected in October.
In the same context, DeepSeek appointed CITIC Securities to prepare a domestic initial public offering (IPO), likely on China's STAR Market, without specifying the timing, size, or valuation. The offering comes as part of the company's efforts to build capital capacity to compete with US labs.
DeepSeek, Tencent, and CATL did not respond to requests for comment from Reuters. The round coincides with accelerating AI investment inside China, as local companies work to develop their models amid US export restrictions on advanced chips.
What do these terms mean?
Valuation: The agreed market value of the company in a funding round, based on growth expectations rather than current revenues. Initial Public Offering (IPO): The first sale of a company's shares to the public on the stock exchange, converting it from a private company to a listed one. STAR Market: A Chinese stock market dedicated to technology and innovation companies, created to fund growth in advanced sectors.
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