AI in action · Markets
DeepSeek Raises About $15 Billion Ahead of a Possible IPO
Chinese AI developer DeepSeek is closing a funding round of about 100 billion yuan, or roughly $15 billion, Reuters and Bloomberg reported on October 22. Tencent and CATL are among the largest of more than 15 investors, and terms could still change before it closes.
While US investors spent last week selling AI stocks, Chinese industrial and technology groups were lining up to put money into one of the country's best-known model developers. DeepSeek has raised about 100 billion yuan, or roughly $14.98 billion, in a round expected to close within days, Reuters reported on October 22, citing four people familiar with the matter. Bloomberg put the figure at $15 billion. Both stressed that the investor list and financial terms could still change.
The round grew as it went. According to Bloomberg, DeepSeek started out seeking 50 billion yuan, raised the target to 80 billion and then to about 100 billion. Reuters counted more than 15 investors. Battery maker CATL and internet group Tencent, both existing shareholders, are among the largest, joined by chipmaker GigaDevice, delivery platform Meituan, carmaker Geely, appliance maker Midea, games company NetEase and investment firms Boyu Capital, CPE, Legend Capital and IDG Capital.
The valuation has climbed quickly. Reuters said the round values DeepSeek at about 500 billion yuan before the new money, roughly $75 billion at the exchange rate it used. In June, when the company raised $7.4 billion in its first outside round, filings by two Chinese investors implied about 350.88 billion yuan, or around $52 billion. Even after this raise DeepSeek's war chest is a fraction of its US rivals': OpenAI and Anthropic have each raised more than $100 billion, according to Bloomberg.
The shape of the investor list says as much as the size. Lian Jye Su, chief analyst at research firm Omdia, told Reuters the backers are all Chinese and many are suppliers of critical components, which could make DeepSeek a central part of the domestic technology supply chain. The company released a model called DeepSeek-V4.1-Flash in September, and Reuters reported in the same month that it had hired CITIC Securities to prepare a possible listing on Shanghai's STAR Market, a step this funding brings closer.
The public-market backdrop is less welcoming than the private one. Reuters noted that data-centre IPOs have been delayed or withdrawn, that some AI companies had weak debuts in South Korea and Hong Kong, and that Z.AI and MiniMax, which listed in Hong Kong in January, trade well below their peaks. A round of this size buys DeepSeek time to choose its moment; it does not tell anyone what public investors will pay when that moment comes.
Sources: Reuters via KSL — DeepSeek wrapping up $15 billion fundraising to fuel AI race, sources say (Oct 22, 2026); The Daily Star — Chinese AI startup DeepSeek raises $15 billion ahead of potential IPO (Oct 22, 2026)