The Chinese company DeepSeek reportedly raised approximately 100 billion yuan (US$ 15 billion) in a private funding round, according to information released by Bloomberg this Thursday (22). The amount represents double the company's initial target and includes investments from major Chinese groups, such as Tencent and CATL, a manufacturer of electric vehicle batteries.
The company, headquartered in Hangzhou, had initially set a target of 50 billion yuan, later expanded to 80 billion. On October 6, Bloomberg had already reported that the fundraising could reach 100 billion yuan. The new report indicates that the negotiations reached that level.
Reuters also learned of the transaction from sources close to the negotiations. In addition to Tencent and CATL, those cited among the participants include Meituan, Geely, Midea and GigaDevice, a Chinese semiconductor manufacturer.
DeepSeek's valuation before the new funds came in was estimated at 500 billion yuan (about US$ 75 billion). This amount does not include the additional capital from the round.
The financing comes as the developer expands investments in computing infrastructure and in the development of open-source artificial intelligence models, used by companies and developers inside and outside China.
The company is also preparing for a possible initial public offering (IPO) in the Chinese market. According to previous information from Reuters, DeepSeek hired the bank CITIC Securities to assist with preparations for a possible listing on the Shanghai Stock Exchange.
Despite the reported amount, the formal completion of the round has not yet been publicly confirmed. Reuters reported that the closing is expected in the coming days and that financial details and the final composition of investors could still change. DeepSeek, Tencent and CATL had not responded to requests for comment sent by Bloomberg.
