The logo of Chinese AI company DeepSeek is seen in this photo illustration taken on January 30, 2025 in Warsaw, Poland.
Jaap Ariens | Nurfoto | Getty Images
China’s DeepSeek is considering expanding its latest funding round to up to 100 billion yuan ($14.9 billion), twice its original target, as government-backed funds and corporate investors vie for stakes, people familiar with the matter told CNBC.
The AI startup has received strong interest from government-backed funds, investment arms of Chinese listed companies and venture capital firms, said the two people, who requested anonymity because they were not authorized to discuss private negotiations.
But people familiar with the matter say DeepSeek closely vets potential investors, rejecting private investment funds raised from individual investors and limiting its funding to primarily government and corporate funds.
The company, which started bringing in external capital for the first time this year, initially set a target amount of 50 billion yuan for this round.
The funding process remains fluid and the amount could change by the time talks are finalized, the people said. Bloomberg reported early Tuesday that DeepSeek was close to securing at least 80 billion yuan. tencent and battery manufacturers Quatre It is one of its biggest backers and is aiming for an IPO in early 2027.
CATL, Geely Automobile, investment managers Monolith Management and Royal Valley Capital injected capital into the latest round, one of the people told CNBC.
DeepSeek, CATL, Geely Auto, Monolith Management and Loyal Valley Capital did not respond to CNBC’s requests for comment.
The round was originally expected to close by the end of August, but talks are nearing the end but are taking longer than expected as some potential investors vacillate over price, one of the people said.
DeepSeek is seeking a valuation of about 500 billion yuan ($75 billion), the people said. The first external funding round, which ended in June, raised about 50 billion yuan. Investor filings related to the round put the valuation at about 350 billion yuan.
From lab to listing
The AI startup caused a slide in US tech stocks in January 2025 after releasing an AI model comparable to its US peers at a much lower cost. The latest model, V4.1 Flash, released in September, is designed to deliver greater functionality and faster inference, the company said.
DeepSeek’s decision to accept external funding was seen as a sign of ballooning AI capital needs and increasing pressure to retain talent amid increased competition.
Founder Liang Wenfeng told investors in a private meeting in July that the company would prioritize driving technology toward artificial general intelligence over maximizing profits.
Talks about the round were temporarily suspended after Liang reportedly said at a private investor conference that Chinese AI companies still lag far behind their U.S. counterparts and are heavily dependent on Nvidia chips.
DeepSeek tapped CITIC Securities to prepare for a potential IPO on Shanghai’s STAR market, Reuters reported in September.
Domestic rival Moonshot AI is also aiming for an IPO in early 2027 after raising money at a valuation of $50 billion, Bloomberg reported on Tuesday.
