DeepSeek Close to Raising About $12 Billion With Tencent and CATL Among Top Investors
Hangzhou, October 2026: DeepSeek, the Chinese artificial-intelligence company whose low-cost models shook global tech markets in early 2025, is close to raising at least 80 billion yuan (about $12 billion), according to Bloomberg.
Key details
| Item | Detail |
|---|---|
| Expected raise | At least 80 billion yuan (~$12 billion) |
| Possible total | Up to ~100 billion yuan (~$15 billion) |
| Original target | ~50 billion yuan |
| Largest investors | Tencent and battery maker CATL |
| IPO plan | Possible domestic listing in early 2027 |
The round has reportedly grown well beyond its original target because of strong investor demand.
Why DeepSeek matters
In January 2025, DeepSeek released its R1 reasoning model, which performed close to leading US models at a fraction of the reported training cost. The release briefly wiped hundreds of billions of dollars off US chip stocks and raised questions about whether massive AI spending was necessary.
Since then, DeepSeek has become a symbol of China's AI ambitions under US export controls that restrict access to the most advanced Nvidia chips.
The context
- China's government issued AI policy guidelines in October 2026 calling for technological self-sufficiency, while warning against speculative investment.
- The US continues to tighten enforcement of chip export rules. In October 2026, a contractor pleaded guilty in a $2.5 billion case involving AI servers diverted to China.
- Global AI funding remains intense: OpenAI, Mistral and others are raising large sums or launching new models.
Why it matters
A $12–15 billion round would make DeepSeek one of the best-funded AI companies outside the US. Backing from Tencent, one of China's biggest tech platforms, and CATL, the world's largest EV battery maker, suggests DeepSeek's models could be used widely in consumer apps, cars and industry.
What happens next
Watch for official confirmation of the round, DeepSeek's next model releases and details of the planned 2027 IPO.
Sources
- TechStartups, "Tech News Weekly Roundup" (9 October 2026), citing Bloomberg: https://techstartups.com/2026/10/09/tech-news-weekly-roundup-the-biggest-stories-in-ai-big-tech-startups-and-cybersecurity/