Chinese AI firm DeepSeek nears 100 billion yuan funding round, with CATL and Tencent as major investors, signaling its push into generative AI and potential IPO in 2027.
DeepSeek nears major funding round
The Chinese artificial intelligence company DeepSeek is close to finalizing a funding round worth about 100 billion yuan, or roughly 15 billion U.S. dollars, according to reports from Reuters and Bloomberg. The funding has not been officially confirmed, but would involve two major investors: Contemporary Amperex Technology Co. Ltd (CATL), a leading lithium-ion battery manufacturer, and Tencent, the parent company of the popular messaging app WeChat and a financial partner of Ubisoft.Initial funding target increased
According to the reports, which cite sources close to the situation, DeepSeek originally aimed for a funding round of 50 billion yuan. However, the target was raised due to strong interest from investors, some of whom are backed by the Chinese government or major local businesses, as noted by Reuters.New resources for generative AI expansion
If completed, the funding would provide DeepSeek with the resources needed to enter the generative AI market with open-weight models and remote execution through API services. These services would be offered at much lower prices than those of competitors like OpenAI and Anthropic. The funding also signals DeepSeek's growing involvement in the investment race, especially in infrastructure for training and running AI models in-house.Timing of IPO and U.S. restrictions
The funding round comes as DeepSeek prepares for an initial public offering, which could take place as early as 2027 in Shanghai. This would happen just days after the United States bans the use of DeepSeek models in federal government operations, though the company has not officially announced the IPO yet.
