Chinese artificial intelligence developer DeepSeek is close to completing a DeepSeek funding round of at least 80 billion yuan, about $12 billion, with Tencent Holdings and battery maker CATL among its largest backers, Bloomberg reported on Tuesday, Oct. 6, 2026. The company has not announced the round.
The raise would be one of the largest private financings in the AI sector. It would also top DeepSeek’s first outside funding, completed earlier this year, and it comes as the company prepares for a possible stock market listing.
What Happened in the DeepSeek Funding Round
According to Bloomberg, DeepSeek first set out to raise about 50 billion yuan. Investor demand grew after the launch of its latest model, pushing commitments past 80 billion yuan. The final total could approach 100 billion yuan, or roughly $15 billion, the report said.
Tencent and CATL have committed some of the largest sums, people familiar with the matter said. Coverage of the report said the round opened in July with a target valuation of about 500 billion yuan, or $74 billion. DeepSeek has not publicly confirmed the figures.
Why It Matters
The size of the round reflects how fiercely investors are competing for stakes in leading AI developers. DeepSeek drew global attention in early 2025 with open-source models that delivered strong results at low cost. Its newer releases appear to have kept that momentum going.
The financing also carries a strategic message about China’s AI ambitions. Backing from a social-media and cloud giant and from the world’s largest battery maker suggests that domestic industrial and technology groups want a direct stake in a homegrown AI leader rather than leaving the field to foreign rivals. That is an interpretation of the investor line-up, not a stated aim of the companies.
For Tencent, a closer tie to DeepSeek could help it keep pace with domestic rivals. Reports say the company plans to build DeepSeek’s models into WeChat and its other apps. For CATL, the investment offers a way into the AI business from a base in batteries.
Key Details
- Amount: at least 80 billion yuan (about $12 billion), possibly up to 100 billion yuan
- Original target: about 50 billion yuan
- Lead backers: Tencent and CATL, according to Bloomberg
- Reported target valuation: about 500 billion yuan ($74 billion), per coverage of the report
- Previous round: about 50 billion yuan, closed in June at a valuation of 59 billion
- Listing plans: restructuring for a possible IPO in early 2027
Broader Context
DeepSeek’s first outside round included founder Liang Wenfeng, who put in about 20 billion yuan of his own money. Tencent contributed roughly 10 billion yuan and CATL about 5 billion yuan. JD.com, NetEase and China’s national AI investment fund also took part.
The company has since hired CITIC Securities to prepare for a possible listing on Shanghai’s STAR Market. Timing, valuation and size of any offering have not been set, according to the reports. DeepSeek is also reportedly building a large data centre in Inner Mongolia to support its models.
According to The Decoder, investor interest was fuelled by DeepSeek’s V4-Flash model, which has posted strong cost and performance benchmarks against rival systems from OpenAI and Anthropic. The same outlet reported that the company is also working on its own inference chip to reduce its reliance on Nvidia and Huawei hardware.
The financing fits a wider pattern. The same day, Bloomberg reported that OpenAI is in talks to raise at least 1.4 trillion pre-money valuation. In China, Moonshot AI has reportedly closed a round valuing it at around 1 billion a year, more than triple its level in June.
What Happens Next
The round is still open, so the final amount and valuation could change. Neither DeepSeek, Tencent nor CATL had publicly confirmed the terms in the coverage reviewed for this report.
After the round closes, DeepSeek plans to restructure its corporate framework ahead of an IPO targeted for early 2027, according to reports. Investors will watch for an official announcement, the confirmed valuation and any detail on how the money will be spent on computing power and model development.
