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DeepSeek nears $12bn round led by Tencent, CATL

 

DeepSeek is nearing an $11.9 billion funding round backed by Tencent and CATL, with the deal reportedly exceeding its initial target.

 

 

DeepSeek funding round

 

Chinese artificial intelligence company DeepSeek is close to raising at least 80 billion yuan, about $11.9 billion, in a new funding round, according to Bloomberg News. Tencent Holdings and battery manufacturer Contemporary Amperex Technology Co. (CATL) have committed among the largest amounts in the round, according to people familiar with the deal.

 

DeepSeek initially sought about 50 billion yuan, but investor demand increased following the release of its latest AI model, Bloomberg News reported. The Next Web said the final amount could approach 100 billion yuan, although DeepSeek has not announced the financing.

 

The reported financing would exceed DeepSeek’s first external funding round, which raised about 50 billion yuan and valued the company at between $52 billion and $59 billion. Founder Liang Wenfeng invested about 20 billion yuan in that round, while Tencent contributed roughly 10 billion yuan and CATL about 5 billion yuan, alongside JD.com, NetEase and China’s national AI investment fund.

 

Tencent and CATL back DeepSeek

 

Tencent operates the WeChat messaging platform and a major cloud business, while CATL is one of the world’s largest electric-vehicle battery manufacturers. The two companies are again among DeepSeek’s largest backers in the reported financing.

 

Reuters previously reported in June that Tencent and CATL were expected to be major investors in DeepSeek’s first external funding round. Reuters said that financing was expected to raise about 50 billion yuan and value DeepSeek at roughly $52 billion to $59 billion.

 

DeepSeek prepares for potential IPO

 

DeepSeek originated from High-Flyer, the quantitative hedge fund established by Liang. The AI laboratory gained international attention in early 2025 following the release of its R1 open-source model and subsequently launched its V4 models in 2026.

 

Reuters reported in September that DeepSeek had engaged CITIC Securities to prepare for a potential initial public offering on Shanghai’s STAR Market. Reuters said the timing, valuation and size of any listing had not been determined.