DeepSeek Secures $15 Billion Funding Round, Doubling Original Target

Chinese AI startup DeepSeek has completed its latest funding round, raising approximately $14.98 billion in investments from a diverse group of companies and investors. The total number of participants in the funding round exceeded 15 individuals or entities, according to sources familiar with the matter.

The list of investors includes prominent Chinese tech firms such as chipmaker GigaDevice, food delivery company Meituan, and automaker Geely. Battery maker Contemporary Amperex Technology (CATL) and WeChat operator Tencent Holdings, both existing shareholders in DeepSeek, were among the largest contributors to the funding round.

Other notable investors include home appliances manufacturer Midea, existing shareholder NetEase, Boyu Capital, CPE, Legend Capital, and IDG Capital. These companies have collectively injected significant capital into DeepSeek’s latest fundraising effort, which is set to be completed in the coming days.

The valuation of DeepSeek before new investments was reportedly around 500 billion yuan, according to sources. With this funding round, the company will have doubled its original target of $50 billion, underscoring strong interest from investors as China seeks to maintain competitiveness in the AI race against the US.

Analysts believe that the high valuation reflects investor confidence in DeepSeek’s open-source strategies and potential for growth. Lian Jye Su, chief analyst at research firm Omdia, noted that the company’s future prospects are promising, given its partnerships with critical component supply chain vendors such as CATL and Tencent.

The fundraising outcome comes amidst growing concerns over massive AI spending, which has triggered a new selloff in global tech stocks this month. This trend is reflected in the poor market debuts of AI-related companies in South Korea and Hong Kong, as well as delays or withdrawals of data centre IPOs.