DeepSeek set to raise at least $15 billion in Tencent-backed funding

DeepSeek is on the verge of securing at least S$15 billion in funding, more than tripling its initial capital-raising goal ahead of a much-anticipated initial public offering in early 2027. The Chinese AI startup has caught the eye of battery giant Contemporary Amperex Technology and WeChat-operator Tencent, among the largest investors in the financing round.

The deal comes after DeepSeek released its latest AI model, V4 Flash, which has set new benchmarks for cost and performance against industry leaders such as Anthropic and OpenAI. The company's founder, Liang Wenfeng, has gained a reputation for technical breakthroughs in the AI sector since launching his start-up in 2025, when DeepSeek produced a model that matched Silicon Valley offerings at a fraction of the cost.

To fund its ambitious plans, DeepSeek will leverage hundreds of Huawei Technologies' top accelerators at a new data center it is constructing in Inner Mongolia, potentially creating one of the largest clusters of Huawei AI chips. The startup has also developed software to program AI chips in collaboration with Huawei. In an interview with investors in 2026, Liang pledged to continue developing open AI models while aiming for artificial general intelligence, rather than focusing on monetization.

While final details may yet change, the company's valuation has potentially reached S$100 billion, with Tencent committing S$10 billion in the round. The funding round has drawn significant attention due to DeepSeek's pivotal role in China's race to compete with global AI players.