Sources: DeepSeek is close to raising $12B+ in a round that could reach ~$14.9B, with Tencent and CATL as the biggest contributors, ahead of an early-2027 IPO

The cost of training foundation models falls by up to 90% for users of cloud AI platforms.

AI research firm DeepSeek is nearing the completion of a significant funding round, potentially raising over 80 billion yuan (approximately $12 billion USD). The round, which could ultimately reach as high as approximately $14.9 billion, is expected to see major contributions from tech giant Tencent and electric vehicle battery producer CATL. This substantial investment comes as DeepSeek prepares for a potential initial public offering (IPO) targeted for early 2027. The company's ambitious capital raise indicates strong investor confidence in its AI technologies and future market prospects.

This funding round positions DeepSeek as a major contender in the competitive AI landscape, rivaling established players and indicating a significant influx of capital into AI infrastructure and research. The involvement of Tencent and CATL suggests a strategic interest in AI's application across diverse sectors, from cloud services to automotive technology. DeepSeek's move towards an IPO signifies a maturing market for AI companies seeking public investment.

The substantial investment ahead of an IPO suggests that DeepSeek is scaling its operations rapidly and aiming to capture significant market share. Investors are betting on DeepSeek's proprietary AI models and its ability to commercialize them effectively. The scale of this round may also signal a trend towards larger, more concentrated funding rounds for AI companies with clear technological advantages and market strategies.