DeepSeek seeks $12B funding round ahead of possible IPO

DeepSeek, the Chinese AI startup that developed the V4 model series, is reportedly raising over CNY80 billion ($11.9 billion) in new funding, according to DigiTimes. The round is said to include Tencent and battery manufacturer CATL as backers. If completed, the raise would be one of the largest for an AI company and could set the stage for a domestic initial public offering.

The CNY80 billion figure aligns with Bloomberg’s earlier report, which described the round as targeting at least $12 billion. DeepSeek’s valuation has not been disclosed, but the size of the raise suggests strong investor interest in its position within the AI sector. The startup’s V4 models, which start at $0.14 per million tokens, have been noted for their competitive pricing relative to other offerings.

Tencent and CATL’s participation points to strategic support for DeepSeek’s technology, particularly as Chinese companies aim to strengthen domestic alternatives to foreign AI infrastructure.

DeepSeek’s plans for an IPO remain unconfirmed. While DigiTimes mentioned a possible domestic listing, no timeline or exchange has been announced. The company’s most recent public update, as noted in StartupReader’s directory, focused on its V4 model pricing and feature updates, not its financial or market strategy.

Earlier this year, Lambda, an AI compute startup, raised $4 billion at a $14.5 billion pre-money valuation, showing that investors are still willing to support infrastructure-focused companies with clear monetization potential. DeepSeek’s next steps will likely depend on its ability to expand its market presence and navigate regulatory requirements, particularly as Chinese authorities increase oversight of AI models.

Sources: digitimes.com