DeepSeek Nears ~$15B Raise at Reported ~$74B Valuation, Backed by Tencent and CATL Ahead of Possible 2027 IPO
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DeepSeek Closes In on a Roughly 100 Billion Yuan Round
DeepSeek is raising or finalizing a funding round of about 100 billion yuan, or roughly $15 billion, according to Reuters reporting. The Hangzhou-based Chinese AI startup is positioning itself to compete with US rivals OpenAI and Anthropic, and a raise of this size would give it substantial new resources for that effort.
The round is expected to close in the coming days. Terms could still change before then.
Who's Investing: Tencent, CATL and a Roster of Chinese Tech Giants
Tencent and battery maker CATL are among the round's investors. China Daily describes them as among the biggest backers in the deal.
They are reportedly part of a larger group. More than 15 investors are said to be involved, including:
- Tencent
- CATL
- Geely
- GigaDevice
- Meituan
The list spans internet platforms, automotive, batteries and semiconductors, a broad cross-section of China's corporate technology sector.
Photo by そらみみ on Wikimedia Commons
Valuation: ~$74B Pre-Money, Potentially ~$89B Post-Money
The round reportedly values DeepSeek at about 500 billion yuan, or roughly $74 billion, before the new money comes in. Adding the roughly $15 billion in fresh capital could imply a post-money valuation of nearly $89 billion.
These figures are reported rather than officially confirmed. Because terms may still shift before the round closes, the final valuation could differ.
Photo by Eric Prouzet on Unsplash
A Fundraising Target That Kept Growing
According to Bloomberg, DeepSeek's fundraising target has risen more than once:
- It started at 50 billion yuan.
- It was then raised to 80 billion yuan.
- It now stands at about 100 billion yuan.
A target that doubled from its starting point suggests strong investor appetite for a stake in the company.
The Business Behind the Valuation
The Information reported that DeepSeek's annualized revenue run rate has reached $1 billion, a figure CEO Liang Wenfeng disclosed to investors. That run rate is more than double its level a few months earlier.
Most of DeepSeek's revenue comes from charging businesses and developers for API access to its models. That gives the company a commercial base to point to as it seeks a valuation in this range.
Looking Ahead: A Potential Early-2027 IPO
The fundraising comes ahead of a potential initial public offering in early 2027. With fresh capital and backing from major Chinese technology and industrial companies, the round would position DeepSeek to compete more directly with OpenAI and Anthropic.
For now, the deal is not final. The round's terms, including its size and valuation, remain subject to change until it closes.