Chinese AI startup DeepSeek is nearing completion of a major fundraising round worth approximately 100 billion yuan ($14.98 billion), with more than 15 investors participating as China seeks to strengthen its position in the global artificial intelligence race.
According to four people familiar with the matter, the investors include chipmaker GigaDevice, food delivery company Meituan and automaker Geely. Battery manufacturer Contemporary Amperex Technology (CATL) and Tencent Holdings, the operator of WeChat, were among the largest contributors, according to two of the sources.
Home appliance manufacturer Midea and existing investor NetEase also participated in the round.
Other investors reportedly include Boyu Capital, CPE, Legend Capital and IDG Capital, which had previously invested in the company.
The fundraising is expected to be completed in the coming days, although the financial details and final list of investors could still change, one source said. DeepSeek had not immediately responded to requests for comment, while Geely declined to comment.
DeepSeek Doubles Its Original Fundraising Target
The reported funding total is more than twice DeepSeek’s original target of 50 billion yuan, highlighting strong investor interest in the company and its role in China’s expanding AI industry.
Sources have placed DeepSeek’s valuation at approximately 500 billion yuan before the latest capital injection.
The reported valuation reflects investor expectations that the company could become an important player in the development of advanced AI models and China’s domestic technology supply chain.
Lian Jye Su, chief analyst at research firm Omdia, said the reported valuation demonstrated investor confidence in DeepSeek’s future and its open-source strategy.
He also noted that the participation of Chinese investors and suppliers of critical technology components could strengthen the company’s position within domestic technology networks.
However, the valuation and fundraising details remain subject to change until the round is finalised.
Major Chinese Companies Back AI Expansion
The reported investor lineup includes companies operating across several key industries, including semiconductors, electric vehicles, batteries, consumer appliances, internet services and food delivery.
CATL is a major battery manufacturer, while Tencent operates one of China’s largest digital platforms through WeChat. Meituan is a leading food delivery and local services company, and Geely is a major automotive manufacturer.
The involvement of companies from different sectors underscores the growing importance of AI technology to China’s broader industrial and digital economy.
Their participation could also help DeepSeek strengthen its relationships with domestic technology suppliers as it works to expand its AI capabilities.
The funding comes as China seeks to remain competitive with the United States in developing advanced AI systems, chips and supporting infrastructure.
Fundraising Comes Amid Global AI Investment Concerns
DeepSeek’s reported fundraising success comes at a time when investors are reassessing the scale of spending on artificial intelligence.
Concerns about the cost of building AI infrastructure and the returns expected from these investments have contributed to pressure on global technology stocks.
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Reuters has reported that changing market sentiment has delayed or derailed some data centre initial public offering plans, while AI-related companies in South Korea and Hong Kong have experienced weak market debuts.
Shares of Z.AI and MiniMax, two large language model developers listed in Hong Kong since January, have fallen sharply from their peaks earlier this year.
Despite these concerns, the reported scale of DeepSeek’s fundraising indicates that some investors remain willing to commit substantial capital to companies they believe can compete in the rapidly evolving AI market.
DeepSeek Moves Closer to Potential IPO
The latest fundraising could bring DeepSeek closer to accessing public markets.
Reuters reported in September that the company intended to begin preparations for an initial public offering process this year and had hired CITIC Securities to advise on a potential listing on China’s STAR Market.
The proposed listing would represent a significant milestone for the Hangzhou-based company, although the timing and final structure of any IPO remain uncertain.
DeepSeek previously raised approximately 7.4 billion yuan in its first external funding round in June, according to Reuters. Filings by two Chinese investors in July suggested that the company was valued at 350.88 billion yuan, equivalent to approximately $52 billion, during that earlier round.
New AI Model Supports Growth Ambitions
Last month, DeepSeek released its DeepSeek-V4.1-Flash model, which the company said was designed to deliver stronger capabilities, faster inference, higher throughput and support for larger models.
The company’s fundraising efforts and product development come as AI developers compete to improve model performance while managing the substantial costs associated with computing infrastructure and advanced chip technology.
If completed on the reported terms, the new funding round would give DeepSeek additional financial resources as it pursues further AI development and prepares for a possible public listing.
However, the final amount raised, investor participation and valuation remain subject to confirmation.
