DeepSeek is already negotiating fresh capital about six weeks after its first major external financing. The news agency Reuters reports, citing the Financial Times, of a new round amounting to approximately 1.5 billion dollars at a valuation of about 70 billion dollars. Meanwhile, the Chinese AI company is reportedly preparing for an IPO.
Second Capital Round Follows Record Financing
DeepSeek completed the first external financing in its history at the end of May 2026, raising around seven billion dollars. The valuation at that time was around 50 billion dollars. Investors included the technology company Tencent and the battery manufacturer CATL (Contemporary Amperex Technology), as reported by the South China Morning Post. Other backers reportedly included NetEase and JD.com, as well as a state-backed fund for the AI industry from Beijing.
For the new round, according to Reuters, at least a capital volume of approximately 1.5 billion dollars is being discussed; according to some sources, it could also be significantly more than ten billion yuan. The talks are still in an early stage, and terms and timelines may still change. Reports from southern Chinese media explain that DeepSeek is seeking capital again about six weeks after the last round because many interested investors did not get a chance in the first round and now want to enter through a second tranche. According to market observers, the interest is also politically motivated: DeepSeek is seen by many investors in China as a kind of national flagship company in the AI sector.
IPO in Mainland China Approaches
In parallel to the new financing round, DeepSeek is reportedly preparing for an IPO in mainland China, according to TechCrunch. The company is reportedly working with auditing firms on an annual financial statement that is expected to be completed by the end of December. An application for the initial listing could be submitted as early as late 2026 or early 2027, with the actual listing expected more for 2027.
There are currently no official confirmations from DeepSeek itself. All information regarding the timeline and volume comes from sources familiar with the discussions who wished to remain anonymous because it involves private information. An IPO in China would also be subject to scrutiny by the Chinese securities regulator, whose processes for technology companies have previously taken several months to years. For a company founded only in 2023, the path to the stock market in less than four years would be exceptionally fast.
A listing in mainland China instead of, for example, Hong Kong or the USA would also bind DeepSeek more closely to domestic investors and circumvent regulatory risks from US restrictions on Chinese tech stocks. For the current financing round, the IPO perspective is likely an additional argument for new investors, as it presents a concrete exit point.
Huawei Chips Replace Nvidia Hardware in Operations
Due to US export controls on high-performance chips, DeepSeek now primarily operates its models on hardware from the Chinese manufacturer Huawei instead of Nvidia processors, as reported by TechCrunch citing Bloomberg. The performance of the models can reportedly keep pace with US top models despite the restrictions, which is remarkable for a company without free access to the most powerful Nvidia chips.
An evaluation by the infrastructure provider Vercel provides a clue to the market position: In June 2026, about 23 percent of the tokens processed through the company’s own AI gateway were from DeepSeek models, while around 32 percent were from Anthropic – independently unverified, as Vercel only analyzes its own customer data and does not claim complete market coverage. For investors, this usage is still a signal that DeepSeek remains economically relevant despite the sanctions and competes in the international market for developers and enterprise customers.
The Huawei cooperation also shows how Chinese AI companies and chip manufacturers are binding closer together due to export restrictions. For DeepSeek’s investors, the dependence on domestic hardware is a double-edged argument: it secures independence from US sanctions but could influence costs and development speed compared to competitors with access to Nvidia.
It will be crucial whether DeepSeek actually closes the new round at the reported valuation or whether investors will push for lower terms given the short interval since the last round. It also remains unclear whether an IPO application will be submitted this year or whether, as with other Chinese tech IPOs, the timeline will be further delayed.
