Chinese AI startup DeepSeek is close to securing at least 80 billion yuan ($11.93 billion) in its latest funding round, according to economictimes.indiatimes.com. The round is backed by major investors including Tencent Holdings and battery maker CATL. Initial plans sought about 50 billion yuan, but investor demand exceeded expectations, potentially pushing the total to nearly 100 billion yuan.
The surge in funding interest follows DeepSeek's recent launch of its AI model DeepSeek-V4.1-Flash, which offers enhanced capabilities, faster inference, and higher throughput. The company has also partnered with Huawei Technologies to develop programming tools optimized for Huawei's Ascend AI chips, reflecting efforts to reduce reliance on Nvidia's AI ecosystem. DeepSeek has engaged CITIC Securities to prepare for a potential initial public offering on the STAR Market, though details on timing and valuation remain undecided.
This funding round underscores growing investor confidence in China's AI sector, particularly in startups advancing large-scale models and hardware integration. DeepSeek's ability to attract commitments from Tencent and CATL places it among the top-funded AI ventures in the region. The company's focus on collaboration with Huawei aligns with China's strategic push to build a self-reliant AI technology stack, differentiating it from competitors relying on Western chipmakers.
DeepSeek's funding round, expected to close soon, could become one of the largest in the Chinese AI industry, with a final tally approaching 100 billion yuan. The company’s potential STAR Market IPO preparation signals its ambition to expand and capitalize on its recent technological advancements.