DeepSeek is reportedly closing a 100 billion yuan funding round at a 500 billion yuan valuation. Seoul Economic Daily reported the news on October 14, 2026, citing Caijing. The round is double the company’s original target. Here is who is investing, how DeepSeek will spend the money, and what comes next.
How Big Is the DeepSeek Funding Round?
The second round is about 100 billion yuan at a 500 billion yuan valuation, double the original 50 billion yuan target. Seoul Economic Daily reports that DeepSeek doubled the target within two weeks as investor demand grew. The company raised 50 billion yuan in June, about four months earlier. The round is close to completion but not final.
Who Is Investing in DeepSeek?
Existing backers Tencent and CATL are joining new investors GigaDevice, SMIC, and Geely Automobile. The mix covers chips, batteries, cars, and internet platforms. That spread signals interest across the Chinese technology supply chain.
| Detail | Reported figure |
|---|---|
| Round size | 100 billion yuan |
| Valuation | 500 billion yuan |
| Original target | 50 billion yuan |
| Prior round | 50 billion yuan, June 2026 |
| Existing investors | Tencent, CATL |
| New investors | GigaDevice, SMIC, Geely Automobile |
What Will DeepSeek Do With the Money?
DeepSeek plans to build a large Inner Mongolia data center with more than 160,000 Huawei Ascend AI chips. The data center is under construction. Using Huawei chips ties the company’s growth to domestic hardware.
How Fast Is DeepSeek Growing?
DeepSeek’s annualized revenue reportedly passed $1 billion, up from $500 million months earlier. The report cites The Information. API prices rose in August to two to four times previous levels, and demand held. The same report lists an API gross margin of 82.9% and an overall gross margin of 44.6% for January to July. These figures come from press reports, not from DeepSeek filings.
When Could DeepSeek Go Public?
DeepSeek is expected to file for a STAR Market listing by the end of 2026 and go public in 2027. It hired Yan Wentao, a former Hillhouse Ventures partner, as CFO on September 21. The role had been vacant for three years.
What Does This Mean for AI Buyers?
Well-funded Chinese labs add price and capability pressure on US vendors. Teams that pick models should compare cost per task, not brand. See our guide to the best AI coding assistants and our list of best free AI coding tools. Read how open-weight releases from Meta and Nvidia raise the same pressure.
The Bottom Line
A 500 billion yuan valuation and a 160,000-chip data center place DeepSeek among the best-funded AI labs. The round is not closed, and the margin and revenue figures are reported, not audited. We will update this page when the round is confirmed. For policy context, read our AI governance guide.
Frequently Asked Questions
How much is DeepSeek raising?
DeepSeek is reportedly raising about 100 billion yuan in a second round, double its original target of 50 billion yuan.
What is DeepSeek’s valuation?
The reported valuation is 500 billion yuan.
Who invests in DeepSeek?
Tencent and CATL are existing backers. GigaDevice, SMIC, and Geely Automobile are reported as new investors.
Will DeepSeek go public?
Reports say DeepSeek is expected to file for a STAR Market listing by the end of 2026 and go public in 2027.
Is the funding round confirmed?
No. Seoul Economic Daily, citing Caijing, says the round is close to completion. DeepSeek has not confirmed the terms in the sources we reviewed.
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David Austin is a technology writer and software analyst at DeployHyre, where he covers AI tools, SaaS platforms, cloud hosting, and business automation. He focuses on hands-on comparisons of pricing, features, and real-world performance so teams can pick the right software with confidence.