DeepSeek is considering expanding its funding round to as much as 100 billion yuan, about $14.9 billion, two people familiar with the talks told CNBC.
By the numbers: The round could reach double its earlier target, with state-backed funds, the investment arms of listed Chinese companies and venture firms all competing for stakes, the two people said.
- DeepSeek is restricting participation by individual investors, according to the same people.
The backstory: DeepSeek triggered a sell-off in US tech stocks in January 2025 by releasing models that rivaled American peers at far lower cost. Its latest, V4.1 Flash, shipped in September and targets greater capability and faster inference.
What they're saying: Founder Liang Wenfeng told investors at a private meeting in July that he prioritizes pushing the technology toward artificial general intelligence over maximizing profit.
Yes, but: Talks on the round were briefly suspended after Liang reportedly told a private investor meeting that Chinese AI companies still lag far behind their US counterparts and lean heavily on Nvidia chips.
What's next: DeepSeek has tapped CITIC Securities to prepare a possible listing on Shanghai's STAR Market, Reuters reported in September. Domestic rival Moonshot AI is targeting an early 2027 IPO after raising at a $50 billion valuation, per Bloomberg.
Why it matters: The lab that made its name training models cheaply is now raising at the scale of the American labs it undercut, which prices in how much capital frontier AI takes even when you are efficient. A Shanghai listing would hand Chinese retail investors direct exposure to it.
