DeepSeek Nears a $74 Billion Valuation Ahead of Its IPO
Updated October 30, 2026. DeepSeek's first outside funding has grown far beyond its original plan. After raising about 50 billion yuan (roughly $7 billion) in June, the Chinese AI lab reopened the round in August at a valuation of about $74 billion, and by October reports said it had expanded to around 100 billion yuan (about $14–16 billion). Reports differ on whether the round has fully closed, and DeepSeek has not commented. Here is what is reported, who is investing, and what it says about China's AI funding.
⚡ Quick facts
- First close: about 50 billion yuan (~$7 billion) in June 2026, DeepSeek's first outside funding
- Expanded round: reported at about 100 billion yuan (~$14–16 billion), double the original target
- Valuation: about $74 billion pre-money, per The Information; other reports cite about 500 billion yuan (~$75 billion)
- Backers named: Tencent, CATL, Geely, Monolith, SMIC and GigaDevice among reported investors
- Next step: reported preparation for a Shanghai STAR Market listing, possibly in 2027
How the round grew
DeepSeek, the Hangzhou lab spun out of quant fund High-Flyer, had never raised outside money until 2026. Its first round closed in June at about 50 billion yuan. In August, Bloomberg reported the round had reopened to raise roughly $8 billion more at a valuation near $74 billion. On October 6, CNBC reported, citing two people familiar with the talks, that DeepSeek was considering expanding it to as much as 100 billion yuan (about $14.9 billion) at about 500 billion yuan (about $75 billion).
On October 30, OODA Loop summarised a report by The Information that the expanded round of about 100 billion yuan (~$16 billion) had closed at a $74 billion pre-money valuation, with state-backed funds holding about 27%. DeepSeek has not confirmed the figures, and earlier reports described the process as "fluid", so treat the exact size and closing status as reported, not official.
Who is investing
Reported backers include Tencent and battery maker CATL, which are said to be among the largest, plus Geely, Monolith Management and Loyal Valley Capital. Seoul Economic Daily, citing Caijing, reported that chipmakers SMIC and GigaDevice joined as new investors, and memory maker ChangXin has also been named. CNBC reported that DeepSeek excluded private funds raised from individual investors. The mix of industrial companies, chipmakers and state-linked funds suggests the round is as much about China's domestic AI supply chain as about financial returns.
What the money is for
DeepSeek's costs are rising fast. Seoul Economic Daily reported that it runs an Inner Mongolia data centre with more than 160,000 Huawei Ascend chips, a sign of its shift to domestic hardware under US export controls. According to The Information, annualised revenue passed $1 billion, up from about $500 million, after DeepSeek raised API prices two to four times in August. Reported gross margins for January to July were about 83% on the API and 45% overall. DeepSeek also hired former Hillhouse executive Yan Wentao as chief financial officer on September 21, and Reuters has reported that it appointed CITIC Securities for a possible STAR Market IPO.
How it compares with US labs
A valuation near $75 billion is large for China but small next to US leaders. Anthropic was valued at $965 billion before its October S-1 filing. DeepSeek's pitch has always been efficiency: models such as DeepSeek V4.1 Flash compete on price rather than raw scale. US officials have also accused Chinese labs of distilling American models, which we cover in our NSA and FBI advisory explainer.
Our take: how to read this round
- Every number is reported, not disclosed. Size, valuation and closing status vary between outlets; wait for a STAR Market filing for audited figures.
- The investor list is strategic. Chipmakers and automakers buying in ties DeepSeek closer to China's industrial policy.
- The price rises matter. Raising API prices two to four times marks a shift from growth-at-any-cost to revenue ahead of an IPO.
- Compute is the constraint. Much of the cash will go on domestic chips and data centres, not just research.
Sources
- Bloomberg: DeepSeek resumes $8 billion round with Monolith in the running (Aug 6, 2026)
- CNBC: DeepSeek considers expanding funding round (Oct 6, 2026)
- Seoul Economic Daily: DeepSeek nears $14 billion funding round, double its original target (Oct 14, 2026)
- OODA Loop: Inside DeepSeek's $16 billion funding round (Oct 30, 2026)
Frequently asked questions
How much has DeepSeek raised?
DeepSeek raised about 50 billion yuan (~$7 billion) in June 2026. Reports in October said the round had expanded to about 100 billion yuan, roughly $14–16 billion. DeepSeek has not confirmed the figures.
What is DeepSeek's valuation?
The Information reported a $74 billion pre-money valuation, while CNBC reported a target of about 500 billion yuan, roughly $75 billion.
Who invested in DeepSeek?
Reported investors include Tencent, CATL, Geely, Monolith Management, Loyal Valley Capital, SMIC and GigaDevice, with state-backed funds reportedly holding a large share.
Is DeepSeek going public?
Reports say DeepSeek is preparing for a possible listing on Shanghai's STAR Market, potentially in 2027, and Reuters reported that it hired CITIC Securities for that purpose. No filing has been made yet.
Why is DeepSeek raising money now?
Training and serving models requires large amounts of compute. DeepSeek is reported to be building on domestic Huawei Ascend chips, and its revenue and costs have both risen sharply in 2026.
Is DeepSeek profitable?
DeepSeek does not publish accounts. Reports citing The Information put annualised revenue above $1 billion with healthy gross margins, but there are no audited profit figures.