DeepSeek Looks to Raise $12 Billion Ahead of IPO

Chinese AI startup DeepSeek is reportedly on the verge of raising $12 billion in a new funding round, surpassing its financing goal as it prepares for an IPO next year, according to Bloomberg News. Contemporary Amperex Technology Co. and technology giant Tencent are among the primary investors in the upcoming financing, which is expected to close shortly.

DeepSeek initially aimed to raise around $7.4 billion, but interest in the round has exceeded expectations following the release of the company's latest AI model. Sources indicate that signed term sheets suggest the round could close as high as $15 billion. The financing event is described as one of the most anticipated debuts on the Chinese market in recent years.

Also in the AI world, rival company Moonshot is targeting an early 2027 IPO after raising funds at a $50 billion valuation. DeepSeek gained prominence last year with the launch of an AI model that matched U.S. rivals in performance while utilizing fewer Nvidia chips. The company reportedly doubled its annualized revenue run rate in recent months, reaching $1 billion.