Chinese artificial intelligence startup DeepSeek is close to securing at least 80 billion yuan ($11.93 billion) in its latest funding round, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The funding round has attracted strong interest from investors following the launch of DeepSeek’s latest artificial intelligence model, according to the report. Chinese battery manufacturer CATL and technology company Tencent Holdings have committed some of the largest amounts in the financing round, Bloomberg said.
DeepSeek had initially targeted about 50 billion yuan in funding, but investor demand has exceeded expectations, the report said. The total amount raised could eventually approach 100 billion yuan, although the final figure has not been determined.
DeepSeek, Tencent and CATL did not immediately respond to Reuters requests for comment. Reuters said it could not independently verify the Bloomberg report.
The funding effort comes as DeepSeek expands its role in China’s rapidly developing artificial intelligence sector. The company has attracted international attention for developing advanced AI models that have challenged established assumptions about the cost and computing resources required to build competitive systems.
DeepSeek recently partnered with Huawei Technologies to develop programming tools optimised for Huawei’s Ascend artificial intelligence chips. The partnership reflects China’s broader efforts to strengthen domestic AI technology and reduce dependence on Nvidia’s chips and software ecosystem.
DeepSeek released its latest model, DeepSeek-V4.1-Flash, last month. The company said the model was designed to offer greater capabilities, faster inference, higher throughput and the ability to scale to larger models.
The company has also been preparing for a potential listing in China’s capital markets. Reuters reported last month that DeepSeek had hired CITIC Securities to advise on preparations for a possible initial public offering on the Shanghai Stock Exchange’s STAR Market.
However, the timing of a potential listing, along with its valuation and the amount it could raise, had not been decided, according to the Reuters report.
A successful funding round of as much as 100 billion yuan would mark a major financing milestone for DeepSeek and underscore the growing appetite among Chinese investors for domestic artificial intelligence companies.
The fundraising also comes as Chinese technology firms and investors seek to build an AI ecosystem based increasingly on locally developed models, chips and software amid restrictions on China’s access to some advanced US technology.
For DeepSeek, the latest financing could provide additional resources for model development, computing infrastructure and expansion as competition intensifies across China’s AI industry.
