Chinese artificial intelligence startup DeepSeek is reportedly preparing to raise about $1.5 billion in new funding while working toward an initial public offering that could take place in 2027 or as early as later this year, according to Bloomberg. The proposed funding round would reportedly value the company at around $71 billion, only a month after it raised $7 billion at a valuation of approximately $50 billion in its first outside financing.
Founded in 2023, DeepSeek quickly gained attention after launching large language models that were seen as both more efficient and more cost-effective than some competing U.S. AI systems. The company’s rapid growth has made it one of China’s leading AI developers despite U.S. export controls on advanced chips.
Enterprise adoption has continued to expand. According to Vercel, DeepSeek accounted for nearly 23% of the tens of trillions of AI tokens processed through its enterprise AI gateway in June, compared with Anthropic’s 32%. The figures highlight the growing role Chinese open-source AI models are playing in enterprise workloads.
Bloomberg reported that investors in DeepSeek include Tencent and Beijing’s National Artificial Intelligence Industry Investment Fund. The company’s cloud platform runs on chips produced by Huawei Technologies, underscoring China’s continued investment in domestic AI infrastructure.
The reported fundraising plans come as competition intensifies between Chinese and U.S. AI developers. DeepSeek’s rapid rise has demonstrated that Chinese open-source models can compete closely with leading American AI systems while continuing to attract enterprise customers and investor interest.
