Chinese AI startup DeepSeek is finalizing a funding round that has already secured over ¥80 billion, approximately $12 billion. This figure exceeds the company's initial target of ¥50 billion. According to reports, the total amount could eventually reach ¥100 billion, or roughly $15 billion, as the firm prepares for a potential IPO in early 2027.
The financing round includes participation from major investors such as Tencent and CATL. This capital injection follows a period of rapid growth for the startup, which recently achieved an annualized revenue run rate of $1 billion. The company began seeking new capital in July with a targeted valuation of ¥500 billion, equivalent to about $74 billion.
DeepSeek is currently preparing for a potential listing on the Shanghai STAR Market and has engaged CITIC Securities to assist with the process. The fundraising momentum coincides with the September release of the DeepSeek-V4.1-Flash model, which is designed for increased throughput and faster inference capabilities.
Beyond model development, the company is expanding its focus on domestic AI infrastructure. Last week, DeepSeek announced a partnership with Huawei to create programming tools optimized for Ascend AI chips. This initiative aims to provide developers with an alternative to the Nvidia CUDA ecosystem, supporting China's broader goal of reducing reliance on U.S. technology.
