Round Details: At Least 80 Billion Yuan

Reuters, citing Bloomberg News, reported on October 6, 2026: Chinese AI startup DeepSeek is close to closing its latest funding round, raising at least 80 billion yuan — about $11.93 billion. The report is based on people familiar with the details of the process.

The company initially planned to raise around 50 billion yuan. But after the successful launch of its newest AI model, investor demand exceeded expectations, and the final figure could approach 100 billion yuan. That means the round could end up nearly twice as large as originally planned.

"DeepSeek is close to securing at least 80 billion yuan ($11.93 billion) in its latest round of funding, Bloomberg News reported on Tuesday, citing people familiar with the matter." — Bloomberg News, via Reuters, October 6, 2026

According to Reuters data cited in the same report (https://www.reuters.com/world/asia-pacific/deepseek-raise-least-12-billion-tencent-backed-funding-bloomberg-news-reports-2026-10-06/), the largest commitments among investors came from Chinese battery maker CATL and Tencent Holdings. The involvement of both companies was noted as one of the key indicators of the round's scale.

Largest Investors: CATL and Tencent

The report stresses that among the companies making the largest commitments in the current funding round are CATL and Tencent Holdings. CATL is a Chinese battery manufacturer for electric vehicles, while Tencent Holdings is one of the country's largest technology conglomerates.

Bloomberg's headline itself describes the round as "Tencent-backed," underscoring Tencent's significant role in the round. CATL's participation signals growing interest from industrial giants — not just traditional tech companies — in AI investments.

The sources did not disclose the exact structure of the financing, each investor's stake, or valuation figures. The round is not yet closed — the report was published with the round described as "nearing completion."

At the same time, the mention of CATL and Tencent among the largest committers reveals the round's structural character: this is not just about venture capital, but about the direct participation of leading players in China's industrial and technology sectors. A battery manufacturer and an internet conglomerate simultaneously allocating large sums to an AI startup points to widening sources of capital flowing into AI in China.

What Fueled Demand: DeepSeek-V4.1-Flash

The main reason investor demand beat expectations was the successful launch of the company's newest AI model. Last month, DeepSeek unveiled its latest model — DeepSeek-V4.1-Flash.

The model was built for strong capabilities, faster inference, higher throughput, and the ability to scale to larger models. It was the market's warm reception of this very model that paved the way to raise the target, originally set at 50 billion yuan.

According to the report, investor demand was so high that the company gained the ability to nearly double the round's size. This shows investment activity around large language models remains strong in China's AI market.

Huawei Partnership: Focus on Ascend Chips

Alongside the funding news, DeepSeek's technological direction is also worth noting. According to Reuters, the company recently partnered with Huawei Technologies to develop programming tools optimized for Huawei's Ascend AI chips.

The partnership is viewed as part of China's broader push to reduce dependence on Nvidia's AI ecosystem. Ascend chips are Huawei's family of processors for AI computing, which Chinese companies see as an alternative to Nvidia products.

DeepSeek's optimization of programming tools specifically for Ascend chips shows the company integrating deeply into the domestic hardware ecosystem. This direction may also be an additional signal for investors: the company is tied not only to models but also to China's domestic computing infrastructure.

The Huawei partnership news and the funding round news were published around the same time: both events concern different facets of DeepSeek's activity in China's tech ecosystem. On one side — software for local chips; on the other — capital from major local investors.

IPO Plans: CITIC Securities Hired

Beyond the funding round, DeepSeek's exchange plans are also on the agenda. As Reuters reported last month, the company hired CITIC Securities to prepare for a potential initial public offering (IPO) on the STAR Market.

The STAR Market is the Shanghai Stock Exchange's board for technology companies, one of the main listing venues for China's innovative companies. Hiring CITIC Securities is seen as one of the early steps in the IPO process.

However, the same Reuters report stressed that the IPO's timing, valuation, and the amount of funds to be raised have not been finalized. In other words, while the company has started preparations, no decision has been made on the specific parameters of going public.

What the Round's Scale Means

The minimum threshold of 80 billion yuan — about $11.93 billion — makes DeepSeek a participant in one of this year's largest private funding rounds. If the final sum reaches 100 billion yuan, that figure will be even higher.

The composition of capital sources is also notable: beyond traditional venture funds, the direct involvement of an industrial giant like CATL and a technology conglomerate like Tencent points to expanding capital flows into AI in China.

The growth dynamics of the figures are also worth attention. While the company initially asked for 50 billion yuan, investor demand pushed the minimum threshold to 80 billion yuan, and the final sum is expected to approach 100 billion yuan. That is nearly a doubling, directly tied to the successful launch of the latest model — DeepSeek-V4.1-Flash. In this way, a single product launch reshaped the entire scale of the funding round.

Meanwhile, the round is not yet closed: the Bloomberg report was published with the round described as "nearing completion," and the final sum and participant list may change. The company itself has not yet commented officially; the report is based on anonymous sources.

Timeline: Key Events of the Past Month

Three major events occurred in succession around DeepSeek over the past month, each directly tied to the company's funding round today.

The first event — the launch of DeepSeek-V4.1-Flash. The model, unveiled last month, is said to offer strong capabilities, faster inference, higher throughput, and the ability to scale to larger models. It was this model's successful launch that pushed investor demand above expected levels and made it possible to significantly increase the round's size beyond the original 50-billion-yuan plan.

The second event — the partnership with Huawei Technologies. The company reached an agreement to develop programming tools optimized for Huawei's Ascend AI chips. This move is seen as part of China's strategy to reduce dependence on Nvidia's AI ecosystem.

The third event — IPO preparations. As Reuters reported last month, DeepSeek hired CITIC Securities for a potential STAR Market IPO. While the IPO timing, valuation, and funds to be raised remain undecided, this step shows the company's long-term capital market plans.

And finally, on October 6, 2026, Bloomberg News — via Reuters — reported that a funding round of at least 80 billion yuan was nearing completion. Thus, within one month, a sequence formed: a model launch, a strategic partnership, IPO preparations, and a record funding round.

Open Questions

All reported figures and details are not yet final. First, the funding round is not closed: the Bloomberg report was published with the round described as "nearing completion," meaning the deal is unsigned and the final sum may change. 80 billion yuan is the currently known minimum threshold; 100 billion yuan is the likely final figure that sources anticipate.

Second, the round's valuation has not been disclosed. There is no information on what stake each investor will receive, or in what structure the round is being conducted — equity, convertible debt, or a mixed form. Nor has the full list of participating investors beyond CATL and Tencent been published.

Third, IPO uncertainties remain. Although the hiring of CITIC Securities is confirmed, according to Reuters last month, the timing of the listing, the company's valuation, and the amount of funds to be raised have not yet been agreed. So the funding round and the IPO are interconnected but continue as separate processes.

Fourth, the company itself has not commented officially. All information is based on people familiar with the process whose names have not been disclosed. This is typical for such large private investment deals: an official announcement usually comes only after the round closes.

Read Reuters' full October 6 report here: https://www.reuters.com/world/asia-pacific/deepseek-raise-least-12-billion-tencent-backed-funding-bloomberg-news-reports-2026-10-06/