Chinese artificial intelligence company DeepSeek is reportedly preparing to raise at least 80 billion yuan, or around $12 billion, in a major funding round backed by Tencent and CATL.
The fundraising could become one of the largest private financing rounds in China’s AI sector.
Investor Demand Pushes DeepSeek Funding Higher
DeepSeek had initially aimed to raise around 50 billion yuan.
However, investor demand reportedly exceeded expectations, prompting the company to consider a much larger round.
According to Bloomberg, the final amount could reach as much as 100 billion yuan.
Tencent and CATL Back the AI Startup
The funding round is expected to receive support from Chinese technology giant Tencent and battery manufacturer CATL.
Their involvement highlights the growing interest among major Chinese companies in artificial intelligence infrastructure and advanced AI models.
DeepSeek has quickly emerged as one of China’s most prominent AI developers.
DeepSeek Gained Attention With R1 Model
The company rose to international prominence in early 2025 after releasing its open-source R1 artificial intelligence model.
The model helped establish DeepSeek as one of China’s most advanced AI research labs.
Its rapid growth has also increased competition with major global AI companies.
DeepSeek V4 Models Challenge Global Rivals
DeepSeek strengthened its position further with the launch of its flagship V4 models earlier this year.
The models received attention for delivering performance that was reportedly comparable to advanced systems developed by OpenAI and Anthropic.
At the same time, DeepSeek’s models were designed to operate at significantly lower costs.
That combination of performance and efficiency has made the company an increasingly important player in the global AI market.
DeepSeek Valuation and IPO Plans in Focus
Earlier reports valued DeepSeek at approximately $74 billion.
However, those estimates were published before reports of the latest funding round emerged.
Investors are also closely watching the company’s potential plans for a public listing.
A successful fundraising round could strengthen DeepSeek’s financial position as it expands its AI research, computing infrastructure and model development.
