DeepSeek is set to soon secure new funding that would value the Chinese artificial-intelligence startup at $74 billion, building its war chest as it targets an initial public offering next year.
The Hangzhou-based company is seeking to raise $7.4 billion to bankroll research and development, and its expansion into computing infrastructure, according to people familiar with the matter.
The fundraising would mark a step-up from DeepSeek’s previous valuation in June, when investors including Tencent valued the startup at more than
DeepSeek is set to soon secure new funding that would value the Chinese artificial-intelligence startup at $74 billion, building its war chest as it targets an initial public offering next year.
The Hangzhou-based company is seeking to raise $7.4 billion to bankroll research and development, and its expansion into computing infrastructure, according to people familiar with the matter.
The fundraising would mark a step-up from DeepSeek’s previous valuation in June, when investors including Tencent valued the startup at more than $50 billion, The Wall Street Journal reported previously.
In the latest round, existing shareholders—including investment firms Monolith Management and Shixiang, as well as Chinese battery giant Contemporary Amperex Technology—are set to inject new capital into the AI startup, the people said.
Several funds backed by Chinese local government vehicles are also planning to invest, some of the people said.
While DeepSeek told most investors in its previous funding round that they had to put money into a limited partnership managed by founder Liang Wenfeng, the company will allow more direct investment in the latest round, some of the people said.
DeepSeek’s annual recurring revenue—a key metric for subscription-based services—has reached $500 million, according to people familiar with its financials.
That will come as a welcome signal about the company’s business model ahead of its possible IPO. DeepSeek has hired banks and advisers in preparation of a planned listing in Shanghai next year, The Wall Street Journal has reported.
DeepSeek’s efforts are part of the broader rush across China’s AI sector to raise capital.
AI model developer Moonshot AI is wrapping up a fundraising round that values the company at around $50 billion ahead of a potential IPO in Hong Kong, people familiar with the matter said. Earlier this week, Alibaba raised $10.2 billion in a new share placement to invest in AI.
DeepSeek attracted global attention in early 2025 with a model that rivals leading American AI systems at a fraction of the cost. It remains among the cheapest AI model providers even after it raised prices on its V4 models earlier this month.
South China Morning Post and The Information earlier reported DeepSeek’s latest fundraising efforts.
Write to Raffaele Huang at raffaele.huang@wsj.com and Tracy Qu at tracy.qu@wsj.com
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