DeepSeek targets $12 billion funding round as it builds for potential 2027 IPO

### DeepSeek Reportedly Seeks at Least $12 Billion in New Funding as It Expands AI Infrastructure

Chinese artificial intelligence startup DeepSeek is reportedly preparing to raise at least $12 billion in a new funding round as it ramps up investment in computing infrastructure and prepares for potential long-term expansion ahead of a possible initial public offering in 2027.

The company had initially targeted roughly 50 billion yuan in the latest financing effort, but stronger-than-expected investor demand following the launch of its newest AI model could push the final amount significantly higher. Analysts estimate the round could ultimately reach about 100 billion yuan, or approximately $15 billion.

Among the investors committing substantial amounts are Contemporary Amperex Technology, better known as CATL, one of China’s largest battery manufacturers, and technology giant Tencent Holdings. DeepSeek reportedly began discussions for the latest financing in July, only months after completing its first major external fundraising round of approximately $7.4 billion.

The new funding round is expected to close this month. Before reports of the larger-than-expected financing emerged, DeepSeek was believed to be heading toward a valuation of around 500 billion yuan, or about $74 billion. Increased investor interest could now result in a significantly higher valuation.

DeepSeek has emerged as one of China’s most closely watched AI companies since the release of its R1 reasoning model in early 2025. The model drew global attention by demonstrating competitive AI capabilities while operating with comparatively lower computing costs than many leading U.S. systems.

The company’s newest V4 Flash model has generated additional interest, particularly because of its reported performance relative to its cost. DeepSeek is increasingly competing with AI developers such as OpenAI and Anthropic as China seeks to strengthen its domestic artificial intelligence capabilities.

The additional capital could provide DeepSeek with resources to expand its computing capacity at a time when access to advanced AI processors remains a central issue in the broader U.S.-China technology competition.

DeepSeek is reportedly constructing a major data center in Inner Mongolia and plans to deploy at least 160,000 high-end AI accelerators supplied by Huawei Technologies. The company has also collaborated with Huawei on software designed to run more efficiently on its Ascend chips.

That strategy could help DeepSeek reduce its dependence on Nvidia’s AI hardware while supporting China’s broader effort to develop an AI computing ecosystem using domestically produced technology.

A potential public listing remains under discussion, with the timing and valuation yet to be finalized. Reports indicate that DeepSeek has hired CITIC Securities to assist with preparations for a possible listing on China’s domestic STAR Market, which focuses on technology and innovation companies.

DeepSeek originated as an offshoot of High-Flyer, the hedge fund founded by Liang Wenfeng. High-Flyer provided much of the company’s early financial support as DeepSeek developed its AI research and models.

Liang has reportedly told investors that DeepSeek intends to continue investing in open AI models while pursuing the longer-term objective of artificial general intelligence. Rather than focusing primarily on immediate revenue generation, the founder has emphasized research, technological advancement and the development of increasingly capable AI systems.

If the latest financing reaches the upper end of expectations, it would mark another major step in DeepSeek’s rapid expansion and underscore growing investor interest in China’s ability to compete in advanced artificial intelligence.