DeepSeek Raises About US$15 Billion in Tencent, CATL-Backed Round Days After US Agency Ban

Chinese artificial intelligence developer DeepSeek has raised about 100 billion yuan (roughly US$15 billion) in a funding round backed by battery giant CATL and internet group Tencent, according to people familiar with the matter cited by Bloomberg News, TechCrunch reported on Thursday. The deal, among the biggest funding rounds seen in China, comes just two days after Washington ordered US federal civilian agencies to strip DeepSeek’s technology from their systems over security concerns.

Bloomberg said the Hangzhou-based start-up lifted its target at least twice during the process, first from 50 billion yuan to 80 billion yuan and then to the final figure of around 100 billion yuan. Reuters, citing two people familiar with the talks, reported that the round was being finalised and was expected to close in the coming days, cautioning that “financial terms could still change.”

Investors and valuation

CATL and Tencent, the operator of WeChat, are among the largest investors in the round, according to both Bloomberg and Reuters. Deal-tracking platform Dealroom reported that the two companies co-led the raise, with money split roughly evenly between existing and new shareholders. It listed Stony Creek Capital, China Fortune-Tech Capital, CPE Asset Management, Legend Capital and carmaker Geely among the new backers, alongside returning investors such as IDG Capital and Lux Capital. Dealroom put DeepSeek’s pre-money valuation at about US$68.8 billion and said CATL was roughly doubling its earlier commitment.

The new money follows a raise of more than US$7 billion in June that valued DeepSeek at US$50 billion, as Reuters reported at the time. In July, TechCrunch reported the company was seeking a further US$1.5 billion at a valuation of around US$71 billion. Founder Liang Wenfeng, who also co-founded quantitative fund High-Flyer, retained an estimated 81.6% stake in the Chinese operating entity after the earlier round, according to data firm WireScreen cited by TechCrunch.

Funding race with US rivals

The capital is set to go into data centres, computing power and open-source model research as DeepSeek tries to narrow the resource gap with US leaders. Bloomberg noted that OpenAI and Anthropic have each raised more than US$100 billion, leaving DeepSeek with considerably less firepower even after this round.

The start-up’s commercial business is growing. China Daily, citing The Information, said Liang told investors in September that DeepSeek’s annualised revenue run rate had reached US$1 billion, more than double its level a few months earlier, with most income coming from businesses and developers paying for API access.

The round also lands amid heavy fundraising across China’s AI sector. TechCrunch noted that Moonshot AI raised US$2 billion at a US$20 billion valuation in May, while Hong Kong-listed Zhipu AI and MiniMax carry market values of roughly US$29 billion and US$7.2 billion respectively.

What’s next

Investors will watch for formal confirmation of the round’s final size and terms, which sources say are not yet settled. DeepSeek is preparing for a potential initial public offering, with TechCrunch reporting a China listing could come as early as next year and Dealroom pointing to a corporate restructuring ahead of a possible debut on Shanghai’s STAR Market. The company did not immediately respond to TechCrunch’s request for comment, and how the latest US restrictions affect its overseas ambitions remains to be seen.

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