Chinese artificial intelligence (AI) firm DeepSeek is close to securing at least 80 billion yuan, equivalent to US$12 billion, in its latest funding round.
The company had initially sought about 50 billion yuan.
Investor interest outstripped expectations following the successful release of its latest AI model.
Based on term sheets signed, the final tally could approach 100 billion yuan.
Battery giant Contemporary Amperex Technology Co. Ltd. (CATL) and WeChat operator Tencent Holdings Ltd. have committed among the largest amounts.
The financing round closes soon, according to people familiar with the matter who asked not to be named.
What It Means
The funding sets the stage for one of the most highly anticipated Chinese market debuts in years.
DeepSeek is preparing for a landmark initial public offering (IPO) in early 2027.
The company has hired China International Trust and Investment Corporation (CITIC) Securities to prepare for a potential Shanghai Stock Exchange STAR Market listing.
The timing, valuation and fundraising size of that listing remain undecided.
The AI Race
DeepSeek shot to fame with its R1 open-source AI model in early 2025.
Its flagship V4 models, released earlier this year, were widely praised for matching advanced models from OpenAI and Anthropic at a fraction of the cost.
The company recently partnered with Huawei Technologies to develop programming tools optimised for Huawei's Ascend AI chips.
That partnership highlights China’s push to reduce reliance on Nvidia’s AI ecosystem.
Earlier reports had placed DeepSeek’s valuation at about US$74 billion before this latest round.
The company completed its first external fundraising round in June 2026, raising approximately US$7 billion.
The final terms of the current round have not been publicly confirmed by the company.
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