DeepSeek raises about $15 billion in one of China's largest AI rounds, eyes Shanghai IPO

DeepSeek, the Hangzhou artificial intelligence startup founded in 2023 by Liang Wenfeng, a former co-founder of quantitative hedge fund High-Flyer, has spent the past year turning technical surprise into financial firepower. Its openly released models made a little known quant spin-off one of the most closely watched names in global AI, and its founder has told investors that pushing the technology toward artificial general intelligence matters more than maximizing near term profit.

The financing history is steep. DeepSeek's first external round closed in June 2026 and raised about 50 billion yuan, with investor filings later implying a valuation of roughly 350.88 billion yuan, or about $52 billion. By July, reports said the company was seeking an additional $1.5 billion at a valuation of around $71 billion, with plans for a potential listing in China as early as next year.

Then came October. Washington ordered federal civilian agencies to remove DeepSeek's AI technology from their systems over security concerns, a restriction that landed two days before the company's latest round was reported. DeepSeek's answer was not retrenchment but scale, in the form of a financing that ranks among the largest ever assembled in Chinese technology.

Behind the money sits a plan: heavier spending on AI data centers, more open models for use in China and overseas, and investment in domestic computing infrastructure to reduce reliance on foreign chips. That plan now has a listing track attached to it, with CITIC Securities engaged to prepare a potential float on Shanghai's STAR Market.

Key Facts

Bloomberg reported on October 22 that DeepSeek raised about 100 billion yuan, or roughly $15 billion, in its latest fundraising round, describing it as one of China's largest ever and a sign of the startup's ambition to compete globally with Anthropic and OpenAI. People familiar with the matter said DeepSeek lifted its target at least twice during talks with investors, starting at 50 billion yuan, moving to 80 billion yuan and finally settling at about 100 billion yuan.

Reuters reported on October 22 that the round drew about 100 billion yuan ($14.98 billion) from investors including chipmaker GigaDevice, food delivery company Meituan and automaker Geely, according to four people with knowledge of the matter. Battery maker CATL and Tencent, both existing shareholders, were among the biggest backers, two of the people said. Home appliance maker Midea and existing shareholder NetEase also participated, alongside Boyu Capital, CPE, Legend Capital and existing shareholder IDG Capital. The total number of investors exceeded 15, one person said, and the company was valued at 500 billion yuan before the new capital was injected.

CNBC reported on October 6 that DeepSeek was already weighing an expansion of the round to as much as 100 billion yuan ($14.9 billion), double its earlier target, with state-backed funds and corporate investors jostling for stakes. The company had initially set a 50 billion yuan target and was seeking a valuation of about 500 billion yuan, or $75 billion, while turning away private funds raised from individual investors and limiting the pool largely to government and corporate money. The round had been expected to close by the end of August and ran longer than planned as some prospective investors wavered over price.

TechCrunch reported on October 22 that the raise landed just two days after the US ordered federal civilian agencies to strip DeepSeek's AI technology from their systems over security concerns. It placed the deal against a June raise of more than $7 billion at a $50 billion valuation and a July effort to gather an additional $1.5 billion at a valuation of around $71 billion.

On the listing track, Reuters reported on October 22 that DeepSeek has hired CITIC Securities to prepare a potential STAR Market float, and Bloomberg reported the same day that one report points to a Shanghai listing early next year. DeepSeek, Tencent and CATL did not respond to emailed requests for comment, and Geely declined to comment, according to the outlets.

Analysis

The headline number invites a simple comparison and a misleading one. Bloomberg noted that OpenAI and Anthropic have each raised more than $100 billion, so a $15 billion round narrows the funding gap without closing it. The bigger picture here is that DeepSeek is no longer raising money as a curiosity or a national symbol. It is raising money as a supply chain project, and the identity of its backers matters more than the size of the round.

Look at the list. CATL makes batteries, GigaDevice designs memory chips, Geely builds cars, Midea sells appliances, Meituan runs delivery and NetEase operates games and online services. Lian Jye Su, chief analyst at research firm Omdia, told Reuters the valuation showed confidence in DeepSeek's open-source strategy and that, because the backers are Chinese component supply-chain vendors, DeepSeek could become a key part of domestic tech supply chains.

What this really means is that this capital is being assembled to buy domestic compute. Bloomberg reported that DeepSeek has begun spending more aggressively on AI data centers and on open-source models for use in China and overseas, and is investing in domestic computing infrastructure to reduce reliance on foreign chips. A battery maker, a chip designer, an automaker and a home appliance group are not passive financial investors in that program. They are potential customers, hardware partners and distribution channels, and their participation signals that the round is as much an industrial policy instrument as a venture bet.

The valuation math is aggressive. At 500 billion yuan before the new money, the deal prices DeepSeek at roughly $75 billion, well above the 350.88 billion yuan implied by investor filings after the June round and above the roughly $71 billion discussed in July. Liang retains an estimated 81.6% stake in the Chinese operating entity after the earlier round, according to ownership data analyzed by WireScreen and cited by TechCrunch, which means a lengthening investor roster above 15 names did not come with a change of control.

Why It Matters

Scale in AI is a function of capital, chips and power, and China's best funded lab just loosened the first constraint. The roughly $15 billion from this round, stacked on the $7.4 billion raised in June, gives DeepSeek a war chest that would be notable for any company outside the very top tier of US labs, and the company has already said where it intends to spend it: data centers, open models and domestic silicon.

The competitive field at home is crowded. TechCrunch compared the deal with Moonshot AI's $2 billion at a $20 billion valuation in May, Manus AI's more than $500 million earlier in October, and the market capitalizations of Hong Kong listed Zhipu AI (Z.ai) and MiniMax at roughly $29 billion and $7.2 billion respectively. DeepSeek's September release of V4.1 Flash, a model built for greater capability and faster inference, set off a drop in the share prices of MiniMax Group and Z.AI, a reminder that its product cadence moves rivals' valuations as much as its fundraising does.

The US restriction adds a second dimension. Being cut out of federal civilian systems raises the cost of any Western expansion, but it also hardens the domestic case for the round: Chinese industrial capital, channeled into Chinese compute, aimed at Chinese and friendly export markets. A Shanghai listing early next year would let public investors price that thesis and give early backers a route to liquidity.

Next Up

Reuters reported on October 22 that the fundraising was set to be complete in the coming days, though financial details and the investor lineup could still change. The items to watch are a final closing announcement, a confirmed post-money valuation and any disclosure of how much of the 100 billion yuan comes from corporate strategic investors versus state-linked funds. DeepSeek could not be reached for comment.

Then comes the listing itself. With CITIC Securities engaged for a potential STAR Market float, the next milestones are a formal filing, a disclosed share structure and a timetable. Bloomberg reported that one report says DeepSeek is aiming for a Shanghai listing early next year. Until those documents land, the 500 billion yuan valuation remains a private marker, and the public market has yet to vote on it.