DEEPSEEK CONSIDERS DOUBLING FUNDING ROUND TO $15 BILLION

Chinese artificial intelligence company DeepSeek is considering expanding its current funding round to as much as 100 billion yuan (about $14.9 billion), twice the 50 billion yuan target it originally set, according to people familiar with the discussions who were not authorised to speak publicly. State-backed funds, investment arms of listed Chinese companies and venture capital firms have shown strong interest in taking part, the people said. DeepSeek is vetting prospective backers closely, turning away private funds raised from individual investors and limiting participation largely to government and corporate money, according to the same sources. The company only began accepting outside capital for the first time this year. The exact size of the round remains unsettled and could still change before talks conclude, the people added.

Investors said to have committed capital in the round include battery maker CATL, carmaker Geely Auto, and investment managers Monolith Management and Loyal Valley Capital, according to a person familiar with the matter. A separate report said DeepSeek is close to securing at least 80 billion yuan (about $12 billion), naming Tencent and CATL as among the largest backers. DeepSeek is seeking a valuation of roughly 500 billion yuan, or $75 billion, sources said. The round had initially been expected to close by the end of August but has taken longer than planned, with some prospective investors said to be hesitating over the price. None of DeepSeek, CATL, Geely Auto, Monolith Management or Loyal Valley Capital responded to requests for comment.

The fundraising comes as DeepSeek faces growing capital requirements for artificial intelligence development and prepares for a possible stock market listing in Shanghai next year, according to people familiar with its plans. A separate report said the company is eyeing an initial public offering in early 2027. Sources close to the talks said negotiations over the funding round are nearing their conclusion. The final structure and scale of the investment have yet to be confirmed.