DeepSeek reportedly raises fresh funding as IPO preparations advance

DeepSeek has reportedly raised approximately 1 trillion yuan in a financing round led by major contributors CATL and Tencent, according to Bloomberg reports cited by multiple media outlets. Strong investor demand pushed the fundraising target from 500 billion yuan to 800 billion yuan before the final amount was reached. The financing would set a record for China’s AI industry, while founder Liang Wenfeng is expected to retain control.

The investment offers potential strategic benefits beyond financial returns. Tencent could gain priority access to DeepSeek’s capabilities across WeChat, games and cloud services, while CATL could strengthen its role in data center energy infrastructure. DeepSeek’s consumer app remains free, without advertising or subscriptions, but business API calls are its main revenue source. By September, annualized revenue had exceeded 1 billion US dollars. An API price increase of 2.3 to 4.5 times reportedly left customer retention stable.

DeepSeek has reportedly hired CITIC Securities to prepare for a listing on the Sci-Tech Innovation Board, with an application planned as soon as the end of 2026. Former GL Ventures partner Yan Wentao has joined as CFO. The company is also increasing spending on AI data centers and continuing open-source model development. Whether a listing could deliver China’s largest IPO fundraising remains uncertain, including whether markets could absorb such a large offering.