October 6, 2026 — DeepSeek is close to securing at least $12 billion in new funding, with Tencent and battery giant CATL among the largest backers, according to Bloomberg News reporting relayed by Reuters. If it closes at that level, it would rank among the largest AI funding rounds on record.
What happened
Bloomberg News reported on Tuesday, citing people familiar with the matter, that DeepSeek is nearing at least 80 billion yuan (about $11.93 billion) in its latest round. The company originally went out seeking roughly 50 billion yuan, but investor demand exceeded expectations following the launch of its latest AI model — and Bloomberg says the final total could approach 100 billion yuan.
DeepSeek, Tencent, and CATL did not immediately respond to Reuters’ requests for comment, and Reuters noted it could not independently verify the report. As with any anonymously-sourced fundraising story, treat the numbers as reported, not confirmed.
The details
A few things stand out in the reporting:
- Tencent’s presence matters. One of China’s biggest tech companies committing a large amount signals serious institutional confidence in DeepSeek — and puts a major distribution partner in its corner.
- CATL is an unusual but telling investor. The world’s largest EV battery maker is betting on AI compute, not just cars — a sign of how deeply energy and AI are now tied together.
- Timing follows the product. Demand surged after DeepSeek’s September release of its latest model, built for faster inference and higher throughput — the kind of demand spike investors love to chase.
The raise also fits a broader pattern. DeepSeek recently partnered with Huawei on programming tools for Huawei’s Ascend AI chips — part of China’s push to reduce dependence on Nvidia’s ecosystem — and last month brought in CITIC Securities to prepare for a potential STAR Market IPO, though timing and valuation remain undecided.
Why it matters
Context is everything here. DeepSeek spent most of its public life as an unusually lean, self-funded lab that embarrassed far better-capitalized rivals. A $12 billion external raise would mark a sharp turn — from the scrappy outsider to a company arming itself for a full-scale war on the open-weights front against American labs and its own domestic rivals.
For everyday users, the practical takeaway: DeepSeek is gearing up to stay free, fast, and competitive — and $12 billion buys a lot of chips, whether they’re Huawei’s or someone else’s. Competition at this scale is what keeps frontier AI accessible to regular people instead of locked behind ever-higher paywalls.
FAQ
Is the $12 billion raise confirmed?
No. It was reported by Bloomberg News, citing unnamed sources. DeepSeek, Tencent, and CATL have not commented, and Reuters could not independently verify it.
Why are Tencent and CATL investing in DeepSeek?
Per the reporting, Tencent sees a strategic AI bet and CATL is diversifying into AI compute. Both gain exposure to one of China’s leading open-weights AI labs.
How does this connect to DeepSeek’s IPO plans?
DeepSeek hired CITIC Securities last month to prepare for a possible STAR Market listing. A mega-round like this would typically come ahead of an IPO to scale operations first — but the company hasn’t confirmed any timeline.
What does this mean for AI users?
More capital behind open-weights models means more competition with paid American models — and historically, that’s meant better free options for everyone.
Sources: Bloomberg News via Reuters.