DeepSeek is reported near a $12 billion funding round

DeepSeek is reported to be close to a funding round of at least 80 billion yuan, about $12 billion, with Tencent and battery maker CATL among the largest commitments, Bloomberg reported Tuesday, citing people familiar with the matter.

The figure comes from those people, not from a prospectus or a company statement. DeepSeek first sought about 50 billion yuan, but interest ran ahead of that after the release of its latest AI model, the people said. Based on signed term sheets, the round could approach 100 billion yuan, they added.

DeepSeek had originally targeted a valuation of about 500 billion yuan in the financing, Bloomberg reported, and the round comes ahead of an initial public offering expected in early 2027. Once the round closes, the next step should be restructuring the company to prepare for that offering, the people said. Neither the valuation nor the listing is in a filing.

Tencent and CATL have the most visible stake, as two of the largest backers in the round, according to the report. A CATL representative declined to comment, and Tencent had no immediate comment. DeepSeek did not respond to an emailed request for comment during a Chinese public holiday, Bloomberg said.

Bloomberg tied the demand to DeepSeek’s latest model, V4 Flash, and to how its cost and performance compare with rivals such as Anthropic and OpenAI. No bank list, lead investor beyond the two names or price per share was reported.

What’s next

Watch for a statement from DeepSeek or its backers after the holiday, or further detail on signed term sheets. Until the company or an exchange confirms the round, it remains a report.

— Nico Valdez