DeepSeek Nears $15 Billion in Tencent and CATL-Led Round Ahead of 2027 IPO

DeepSeek is close to securing at least 80 billion yuan, roughly $12 billion, in a new funding round backed by Tencent and battery maker CATL, blowing past its own initial target of approximately 50 billion yuan, or $7.5 billion. Based on signed term sheets, the final raise could approach 100 billion yuan, approximately $15 billion, at a valuation that had originally been targeted at around 500 billion yuan, or $75 billion.

Investor demand surged following the release of DeepSeek's latest AI model, helping the Hangzhou-based company secure commitments well above its stated goal. Tencent and CATL, who also participated in DeepSeek's first external funding round earlier this year, which raised more than $7 billion, are among the largest investors in the new round.

Once the round closes, DeepSeek is expected to begin restructuring in preparation for an IPO targeted for early 2027, which Reuters had previously reported would be a potential mainland China listing. The new capital will fund rapidly growing AI infrastructure needs, including plans to deploy at least 160,000 of Huawei's highest-end AI accelerators at a new data center in Inner Mongolia, while the company continues developing open AI models and pursuing artificial general intelligence.

The listing would rank among the most closely watched Chinese technology IPOs in years. DeepSeek's rival Moonshot AI is also targeting a 2027 public offering, underscoring a broader rush by China's leading AI developers toward the public markets amid intensifying competition with U.S. frontier models.