Chinese AI startup DeepSeek raised $15 billion (100 billion yuan) in its second funding round backed by Tencent Holdings Ltd. and CATL, nearly doubling its initial target. The Hangzhou-based firm is using the capital to expand AI data centers and develop open-source models while accelerating plans for an early 2027 Shanghai IPO. The fundraising comes just days after the U.S. ordered federal agencies to remove DeepSeek technology over security concerns.
Second funding round details
- ▪Hangzhou-based artificial intelligence firm DeepSeek raised approximately 100 billion yuan ($15 billion) in its second private funding round after a $7 billion round in June, nearly doubling its initial target from 50 billion yuan to 80 billion yuan
- ▪DeepSeek plans to use the $15 billion raised in October 2026 to expand artificial intelligence data centers and develop open-source models for Chinese and international markets
- ▪Battery maker Contemporary Amperex Technology Co. Ltd. (CATL) and WeChat parent company Tencent Holdings Ltd. participated as major investors in DeepSeek's $15 billion funding round
- ▪DeepSeek, Tencent Holdings Ltd., and Contemporary Amperex Technology Co. Ltd. declined or did not respond to requests for comment regarding DeepSeek's $15 billion second funding round
Initial public offering plans
- ▪DeepSeek is accelerating its initial public offering timeline and aiming for a stock listing in Shanghai as early as early 2027
- ▪DeepSeek's planned initial public offering follows market debuts by Chinese artificial intelligence rivals Zhipu AI and MiniMax Group Inc. in Hong Kong in January 2026
Impact on AI competitors
- ▪DeepSeek released its open-source V4.1 Flash model in September 2026, causing share prices of rival domestic artificial intelligence firms MiniMax Group Inc. and Z.AI Co. to decline
- ▪Benchmark analysis from Artificial Analysis identified a "DeepSeek death zone" describing market pressure on artificial intelligence competitors unable to match DeepSeek's performance or offer lower prices
Funding for Chinese AI startups
- ▪Chinese artificial intelligence developer Moonshot AI raised $2 billion at a $20 billion valuation in May 2026
- ▪Chinese artificial intelligence startup Manus AI raised over $500 million in early October 2026
Story comments
Loading comments…