DeepSeek, which garnered Wall Street's attention in 2025 for its accessible and highly capable AI model, has completed a major funding round to challenge the growing dominance of OpenAI and Anthropic.
In the latest round, DeepSeek raised $15 billion, equivalent to approximately 100 billion yuan. The funding came from battery giant CATL, Tencent (the company behind WeChat), and several other leading technology firms.
Initially, the Hangzhou-based company planned to raise 50 billion yuan. However, demand increased this target to 80 billion, and subsequently to approximately 100 billion.
New participants in the list include automaker Geely, Legend Capital, Stony Creek Capital, China Fortune-Tech Capital, and CPE Asset Management. Among existing investors, IDG Capital, Lux Capital, and Silicon 100 also joined CATL and Tencent. It is reported that only CATL contributes about $1.38 billion, which is roughly double their check from the first round.
Dealroom estimates DeepSeek's preliminary valuation at approximately $68.8 billion. It is reported that the funds are distributed almost evenly between new and existing shareholders, indicating that early investors maintain faith even at a significantly higher price.
Previously, DeepSeek closed its first round worth over $6.88 billion in June, and opened a second round in July. In total over six months, this amounts to about $20.6 billion, which Dealroom calls the largest primary market financing in China this year.
The majority of the raised funds will be directed towards model research and computing power. There are also reports of increased spending on data centers and open-source models. Corporate restructuring is planned, and, according to reports, an Initial Public Offering (IPO) on the Shanghai Star Market is being prepared.
Despite $15 billion being a huge sum, it does not equalize the odds. OpenAI and Anthropic have each raised over $100 billion, and DeepSeek still has significantly fewer resources. Nevertheless, it has never had to measure up to American labs in dollar terms, as its reputation is based on efficiency, proving that strong models do not require infinite budgets.
This combination of discipline with much greater financial capacity should concern competitors. Furthermore, DeepSeek is not alone; Moonshot AI is reportedly approaching a $50 billion valuation and plans its own IPO in Hong Kong. Chinese AI is attracting capital at an unprecedented speed.
Perhaps more significant funding will lead to faster product releases, and DeepSeek's open models may become stronger and cheaper, creating price pressure on everyone, including American providers. The investment composition is also important: since CATL deals with batteries and Geely with automobiles, their investments indicate a deepening of AI into hardware and industry, not just chatbots. It should be noted that this report has not been officially confirmed by DeepSeek.
In any case, the message is clear: DeepSeek has ceased to be a modest underdog and has transformed into a well-funded contender, making the AI race much more competitive.
