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Report: DeepSeek to complete at least 80 billion yuan funding round led by Tencent and CATL
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- DeepHorus
Chinese artificial intelligence company DeepSeek is close to completing a funding round of at least 80 billion yuan, with Tencent Holdings and Contemporary Amperex Technology Co. (CATL) among the investors committing the largest amounts, according to people familiar with the matter. DeepSeek initially sought approximately 50 billion yuan in funding, but market interest far exceeded expectations after the successful launch of its latest AI model. According to the signed term sheet, the total amount raised in this round could approach 100 billion yuan. Negotiations are nearing completion, though specific details may still change during final discussions.
DeepSeek has been riding a wave of momentum following the release of its V4 Flash model, which has prompted outsiders to reassess its value for money relative to models from Anthropic and OpenAI. People familiar with the matter said DeepSeek initially targeted a valuation of approximately 500 billion yuan in this funding round. This round of funding lays the groundwork for one of the most anticipated IPOs in the Chinese market in recent years. Competitor Moonshot AI also plans to list in early 2027, after completing its final round of private funding prior to an IPO at a valuation of 50 billion US dollars.
DeepSeek has attracted enormous interest from potential investors because it is one of the core Chinese enterprises participating in the global AI competition. People familiar with the matter stated that once this funding round is completed, DeepSeek's next step is to restructure the company in preparation for an IPO. This series of moves demonstrates the strong appeal of Chinese AI enterprises in capital markets.
Tencent had previously become DeepSeek's largest investor in a prior funding round with an investment of 10 billion yuan, as the company hopes to integrate AI into its various platforms. CATL, as the world's leading battery manufacturer, is likely eyeing the increasingly lucrative business of supplying components to the AI industry, including providing supplies to data centers. The continued increased investment from both giants reflects a high degree of market recognition of DeepSeek's long-term value.
As of press time, a representative from CATL declined to comment, Tencent did not immediately respond, and DeepSeek did not reply to a request for comment. If this funding round is successfully completed, DeepSeek is expected to become one of the most highly valued companies in China's AI sector and pave the way for a future listing. Industry analysts noted that this large-scale funding round will further intensify the competitive landscape in the global AI industry.
