Key points
- DeepSeek's round could reach double its original target
- Tencent and CATL are among the biggest backers
- DeepSeek is preparing for a possible IPO in Shanghai
DeepSeek, the Chinese AI developer, is close to raising at least 80 billion yuan, about $11.9 billion, in its latest funding round, and the total could reach 100 billion yuan, about $14.9 billion, Bloomberg reported on Oct. 6. At 100 billion yuan, the round would be twice its original 50 billion yuan target.
Reuters, citing its own source, reported that DeepSeek is set to raise more than 80 billion yuan. Money committed to the round already exceeds the 50 billion yuan target, and DeepSeek is expected to close it in October, according to Reuters.
Tencent and CATL are among the biggest backers
Battery maker CATL and Tencent (TCEHY) have committed some of the largest amounts in the round, according to Bloomberg. DeepSeek, Tencent and CATL didn't immediately respond to Reuters' requests for comment.
DeepSeek began the round in July aiming for a valuation of 500 billion yuan, about $74.6 billion, Reuters reported. A month earlier, it raised about $7.4 billion in its first outside funding round.
DeepSeek is preparing for a possible IPO
DeepSeek has hired CITIC Securities to prepare for a possible listing on Shanghai's STAR Market, though the timing, valuation and size of an offering are undecided, Reuters reported last month.
The company's annualized revenue run rate reached $1 billion, The Information reported on Sept. 23, according to Reuters. The funding round's targeted $74.6 billion valuation would equal about 75 times that reported annualized revenue run rate.
DeepSeek released its latest model, DeepSeek-V4.1-Flash, last month and has been working with Huawei on programming tools for its Ascend AI chips.
Dollar figures use Reuters' rate of 6.7045 yuan to the dollar.
