Chinese AI startup DeepSeek is considering expanding its latest fundraising round to as much as 100 billion yuan (about US$14.9 billion), double its earlier target, according to two people familiar with the matter who spoke to CNBC.
The company, which opened to outside capital for the first time this year, initially set a 50 billion yuan target for the round. The people said DeepSeek is vetting prospective investors closely, turning away private investment funds raised from individual investors and largely limiting the pool to government and corporate funds. The talks remain fluid and the final amount could still change.
Bloomberg reported on Tuesday that DeepSeek is close to securing at least 80 billion yuan, with Tencent and battery maker CATL among the largest backers, and is eyeing an IPO in early 2027. CATL, Geely Auto and investment managers Monolith Management and Loyal Valley Capital have committed capital to the round, one person told CNBC. None of the companies responded to CNBC's requests for comment.
The round was initially expected to close by the end of August but has taken longer than planned, the people said, as some prospective investors waver over the price. DeepSeek is seeking a valuation of about 500 billion yuan (US$75 billion). Its first external round, which closed in June, raised about 50 billion yuan, and an investor filing related to that round implied a valuation of roughly 350 billion yuan.
DeepSeek triggered a sell-off in U.S. tech stocks in January 2025 after releasing AI models that rivaled American peers at far lower cost. It released its latest model, V4.1 Flash, in September. Founder Liang Wenfeng told investors at a private meeting in July that he prioritizes progress toward artificial general intelligence over profit.