DeepSeek raises about $15 billion in round led by Tencent and CATL
Chinese AI start-up DeepSeek has raised about 100 billion yuan ($15 billion), one of China's biggest private funding rounds, as it races to close the money gap with OpenAI and Anthropic.
At a glance
- DeepSeek, the Hangzhou-based AI company, has raised about 100 billion yuan (roughly $15 billion), according to people familiar with the deal.
- Tencent and battery giant CATL are among the biggest investors; the company and the investors have not publicly confirmed the round.
- The target was raised at least twice, from 50 billion yuan to 80 billion yuan and then to about 100 billion yuan, as demand from investors grew.
- DeepSeek's annualised revenue run rate reached about $1 billion by late September, and the company is preparing for a possible listing on Shanghai's STAR Market.
- OpenAI and Anthropic have each raised more than $100 billion, so DeepSeek still has far less money to spend on chips and data centres.
Chinese artificial intelligence company DeepSeek has raised about 100 billion yuan (roughly $15 billion) in a new funding round, with internet giant Tencent and battery maker CATL among the largest investors, people familiar with the deal said on Thursday, October 22, 2026. The round, one of the biggest private fundraisings in China's history, gives the Hangzhou-based start-up far more money for chips, data centres and new models as it tries to keep pace with US rivals OpenAI and Anthropic.
What happened
According to people familiar with the plans, DeepSeek has gathered commitments of about 100 billion yuan. Investor demand was so strong that the company raised its target at least twice during the process. Some people involved described the round as still being finalised in its last days, with the final terms possibly changing slightly before it formally closes.
DeepSeek, Tencent and CATL have not publicly confirmed the deal, and no valuation has been officially disclosed.
| Detail | What is known |
|---|---|
| Company | DeepSeek (Hangzhou, China) |
| Amount | About 100 billion yuan (~$15 billion) |
| Biggest investors | Tencent, CATL |
| Original target | 50 billion yuan |
| Raised target | 80 billion yuan, then ~100 billion yuan |
| Annualised revenue run rate | About $1 billion (late September 2026) |
| Possible listing | Shanghai STAR Market, date not set |
| Official confirmation | None yet |
Other Chinese corporate groups, including large consumer, carmaking and chip firms, are reported to have joined the round, but the full list of investors has not been published.
Background
DeepSeek was founded in 2023 by Liang Wenfeng, who also runs the quantitative hedge fund High-Flyer. It became world-famous in January 2025, when its low-cost R1 reasoning model performed close to leading American systems. That shock triggered a heavy sell-off in US technology shares, including one of the biggest single-day drops in market value in Wall Street history for chipmaker Nvidia, as investors questioned whether huge AI spending was necessary.
Since then the company has released a series of open-source models and spent more on computing power and data centres. Most of its income comes from businesses and developers who pay to use its models through an online interface (API). Liang told investors in September that the company's annualised revenue run rate — its recent monthly sales multiplied by 12 — had passed $1 billion, more than double the level a few months earlier, and that higher prices had not driven customers away.
DeepSeek is also preparing for a possible stock market listing and has hired a Chinese investment bank, Citic Securities, to help with a potential offering on Shanghai's Nasdaq-style STAR Market. This week, Chinese state media said DeepSeek and rival MiniMax had completed registration under new rules on exporting AI technology that Beijing introduced on October 16.
Reactions
Neither DeepSeek nor its two biggest backers commented on the reports. Analysts said the size of the round shows how much Chinese industry now wants a stake in home-grown AI, especially as US export controls limit China's access to the most advanced American chips.
The deal also comes a few days after the US Department of Homeland Security ordered federal civilian agencies to remove DeepSeek and products built on its technology from government systems, citing data security fears. China's foreign ministry accused Washington of politicising technology.
Why it matters
Even at $15 billion, DeepSeek still has much less money than its American rivals: OpenAI and Anthropic have each raised more than $100 billion. But DeepSeek has built a reputation for doing more with less, and fresh funding will let it buy more computing power and hire more engineers.
For investors, the round is a sign that China's AI race is shifting from small, cheap experiments to large-scale spending — the same trend that has worried markets in the US, where Meta and other tech companies fell sharply this week over the cost of their AI plans.
For South Asia, DeepSeek's open and low-cost models matter because many start-ups, universities and software firms in Pakistan, India and Bangladesh use them as a cheaper alternative to US services.
What happens next
The round is expected to be formally completed in the coming days, when the company may confirm the amount and investors. Any decision on a STAR Market listing would need approval from Chinese regulators, and no timetable has been announced. DeepSeek's next major model release is also closely watched by investors and rivals, as the company's previous launches have moved global technology stocks.
Questions people are asking
How much money did DeepSeek raise?
DeepSeek has raised about 100 billion yuan, or roughly $15 billion, in its latest funding round, according to people familiar with the deal. It would be one of the largest private funding rounds ever for a Chinese company.
Who invested in DeepSeek?
Tencent, the owner of WeChat, and CATL, the world's largest electric-vehicle battery maker, are among the biggest investors in the round. Neither company nor DeepSeek has publicly commented on the deal.
Is DeepSeek going public?
DeepSeek is reported to be preparing for a possible initial public offering, most likely on Shanghai's tech-focused STAR Market, and has hired an investment bank to help. No listing date has been announced.
