DeepSeek Raises $15B in Record China AI Funding Round
DeepSeek has raised about 100 billion yuan, roughly $15 billion, with Tencent and CATL among the biggest investors, setting up a possible early-2027 IPO.
Chinese AI startup DeepSeek has raised about 100 billion yuan, roughly $15 billion, in its latest funding round, Bloomberg News reported on Thursday. The deal is one of the largest AI fundraisings ever in China and shows how far DeepSeek has come from its viral breakout last year.
What happened
Chinese AI startup DeepSeek has raised about 100 billion yuan, roughly $15 billion, in its latest funding round, Bloomberg News reported on October 22, citing people familiar with the matter. Reuters picked up the report on Thursday. Battery maker CATL and WeChat owner Tencent were among the biggest investors in the round. The round is double DeepSeek's original plan. The company started out in July aiming to raise about 50 billion yuan, but investor demand pushed the total higher after its latest model release drew strong interest. Earlier reporting said the final amount could approach 100 billion yuan, and the latest figure confirms it hit the top of the range.
Why it matters
The size of the raise puts DeepSeek in rare company. At a targeted valuation of about 500 billion yuan, roughly $74 billion, it is now one of the most valuable private AI companies in the world, closing in on the leading US labs. The money comes with real business behind it. DeepSeek's annualized revenue has reached about $1 billion, according to The Information, more than double its pace from just a few months ago. Its low-cost models have forced price cuts across the industry and narrowed the gap between Chinese and US AI models to about 3 percent on benchmark scores, down from about 9 percent in May, according to Bloomberg Intelligence.
What comes next
The war chest is expected to fund more computing power and a possible public debut. DeepSeek has hired CITIC Securities to prepare for a possible listing on Shanghai's STAR Market, with talk of an early 2027 IPO, though timing and size are not settled. Reuters noted it could not immediately verify Bloomberg's report, so some details may still shift. But the direction is clear: China is pouring serious money into domestic AI labs, and DeepSeek is leading the pack.
Sources
- Reuters - https://www.reuters.com/world/asia-pacific/deepseek-raises-15-billion-challenge-leading-us-labs-bloomberg-news-reports-2026-10-22/ - Tech Startups - https://techstartups.com/2026/10/06/deepseek-to-raise-12-billion-in-tencent-and-catl-backed-funding-ahead-of-ipo/