Chinese AI laboratory DeepSeek is nearing the completion of a new funding round, which is expected to reach at least ¥80 billion, or approximately $12 billion. While the company initially targeted ¥50 billion, increased demand following the release of its latest model may push the final total toward ¥100 billion.
Tencent and battery manufacturer CATL are the primary investors in this round. Both companies previously participated in the firm's earlier funding round this year, which raised about ¥50 billion. In that initial round, Tencent contributed ¥10 billion, CATL provided ¥5 billion, and founder Liang Wenfeng invested ¥20 billion.
For Tencent, the partnership serves as a strategic move to remain competitive in the domestic AI market. Meanwhile, CATL is integrating advanced AI models into its broader business strategy, which includes the development of batteries for electric vehicles and solid-state technology.
DeepSeek has reportedly engaged CITIC Securities to prepare for a potential initial public offering on the STAR Market in Shanghai. Although specific details regarding the valuation, timeline, and size of the offering remain undecided, the move signals the laboratory's transition toward commercial expansion.
