DeepSeek Raises $15B in Private Round, Targets Early 2027 Shanghai IPO
DeepSeek has completed its second private funding round, raising $15 billion (approx. 100 billion RMB) at a valuation of roughly $74 billion. The company is accelerating its Initial Public Offering (IPO) plans, targeting a listing in Shanghai by early next year, potentially beating OpenAI to the public markets. Existing investors CATL and Tencent participated again, joined by new backers including Legend Holdings-backed Lenovo Capital.
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DeepSeek Completes New Funding Round Worth Over 100 Billion RMB; Reports Indicate "Lenovo-Linked" Investors Join the Deal
On October 23, citing sources familiar with the matter, The Wall Street Journal reported that on October 22 (local time), Chinese AI startup DeepSeek completed its second private funding round, raising $15 billion (approximately 100.323 billion RMB at current exchange rates). Strong investor demand pushed the final raise to nearly double the initial target, providing financial backing for a potential IPO plan.
Sources indicate that DeepSeek is accelerating preparations for an Initial Public Offering (IPO), aiming to list in Shanghai as early as next year. If successful, DeepSeek could enter the capital markets ahead of OpenAI and Moonshot AI.
According to individuals involved in the financing, DeepSeek’s valuation stood at approximately $74 billion (about 494.929 billion RMB) prior to this round. CATL and Tencent participated again, following their investment in the previous round.
Some sources noted that this funding round lasted from July to October, taking longer than recent AI company financings. As negotiations progressed, additional investors joined the deal.
Earlier reports indicated that existing shareholders such as Lishi Capital and Shixiang Capital also increased their investments in this round.
New entrants include Stone Creek Capital, a private equity firm focused on the semiconductor industry. Legend Capital, backed by Lenovo Group, and automaker Geely also participated in the investment.
DeepSeek has hired CITIC Securities as its IPO advisor and appointed Yan Wentao, who has a background in venture capital, as Chief Financial Officer (CFO) in September.
As DeepSeek raises substantial capital, some investors have become increasingly cautious about the profitability prospects of AI companies. Questions are emerging regarding whether massive capital expenditures can yield sustained profits and if the rising valuations of AI firms are justified.
According to sources, DeepSeek founder Liang Wenfeng disclosed to investors in September that the company’s annualized revenue run rate reached $1 billion (approximately 6.688 billion RMB) based on current income levels. Annualized revenue is a key metric for assessing the performance of subscription-based services.