DeepSeek seeks $12B after demand outstrips its funding target
Liang Wenfeng's latest model release helped lift the round's reported target from 50 billion yuan, with an IPO described as possible in early 2027.
By Ryan Merket · Published · Updated
Primary source: Bloomberg Technology
Why it matters
DeepSeek's reported target has risen from 50 billion to at least 80 billion yuan in a matter of months. If the financing closes, it will test whether Liang Wenfeng can scale a research-first AI company with outside capital while preserving the founder control that shaped its earlier funding.
DeepSeek, founded by Liang Wenfeng, is close to securing at least 80 billion yuan ($12 billion) in a funding round that began with a target of about 50 billion yuan, Bloomberg reported on October 6th, citing people familiar with the deal. The financing has not yet closed. Bloomberg's sources said signed term sheets could bring the final total close to 100 billion yuan.
Founder and CEO Liang Wenfeng built DeepSeek's research operation with profits and computing resources from High-Flyer, the quantitative-investment firm he co-founded. Liang studied engineering at Zhejiang University, then applied machine learning to quantitative finance before building High-Flyer and founding DeepSeek in 2023, according to the Associated Press.
A target reset after a model release
Bloomberg's sources said DeepSeek initially sought about 50 billion yuan, but investor interest exceeded expectations after the release of its latest AI model. DeepSeek's own September 10th announcement introduced V4.1-Flash, a model the company described as faster and less costly to serve. The announcement details a new architecture and lower API prices; the funding report does not connect the model's release to a specific amount of revenue or customer demand.
The timing coincides with a separate commercial milestone. RuntimeWire reported on September 24th that Liang shared a $1 billion annualized revenue run rate with investors, citing The Information's reporting. A run rate extrapolates recent revenue pace; it is not a full-year revenue result. The same RuntimeWire report described a 50-billion-yuan target for the current round. Bloomberg's latest account indicates that target has since been surpassed in commitments or signed term sheets, while leaving the final funded amount unsettled.
Bloomberg says the round is expected to close soon, while its sources describe term sheets and a possible final tally. DeepSeek is seeking more financing than previously reported, but has not announced completed proceeds of $12 billion or $15 billion.
Big checks, limited detail
Tencent and Contemporary Amperex Technology Co. Ltd. (CATL) have committed among the largest amounts in the round, according to Bloomberg's sources. Tencent operates WeChat; CATL is a major battery maker. Bloomberg did not give their individual commitments for this financing. Its report also does not establish a final valuation or identify a lead investor, leaving the size of the round clearer than its price or full investor roster.
Liang's earlier financing approach put founder control at the center of the deal. In June, Reuters reported that investors in DeepSeek's first major external round placed capital into a limited partnership managed by Liang. They invested through that structure rather than directly in DeepSeek. The arrangement was reported as a way for Liang to retain control. The current funding report does not describe whether this round uses the same arrangement or what governance terms accompany the new money.
DeepSeek's first external round was reported at about 50 billion yuan, with Tencent and CATL among the largest outside investors. Only months later, the reported target for the next financing is at least 80 billion yuan. Investors are increasing their exposure as DeepSeek releases new models and builds commercial revenue, while Liang has to balance that outside capital against the independence that helped define the company's early research strategy.
Bloomberg describes a possible landmark IPO in early 2027. If the timing holds, this round would give DeepSeek a larger capital base before it tests public-market appetite for a business whose model releases, API economics and founder-controlled financing are part of its investment case.