Chinese artificial intelligence company DeepSeek is poised to raise at least 80 billion yuan, approximately $12 billion, in its final funding round before going public. Originally set at 50 billion yuan, the increased target reflects a swift acceleration in private market demand. Major players such as Tencent Holdings and battery manufacturer CATL are reportedly involved, with the strong interest potentially pushing the total to nearly 100 billion yuan, about $15 billion.
Infrastructure Investment to Skyrocket Post-Model Launch
This surge in financing follows the launch of DeepSeek’s V4 Flash AI model. The company is planning to significantly expand its computing infrastructure with the new capital, aiming to deploy at least 160,000 of Huawei’s advanced AI accelerators at a new data center in Inner Mongolia. Such expansion positions DeepSeek as a formidable competitor in China’s escalating AI race.
DeepSeek is increasingly recognized as a leading force in China’s AI sector. This planned capacity boost suggests intensifying competition not only with domestic rivals but also on a global scale.
DeepSeek’s new funding round is expected to rapidly scale the company’s computing capabilities and reshape its pre-IPO structure.
IPO Preparation and Competitive Dynamics
Once the funding round concludes, DeepSeek is expected to restructure its corporate framework ahead of a potential IPO, targeting Shanghai’s tech-focused STAR Market by early 2027. This phase coincides with a transformative period in the competitive landscape of China’s AI industry.
Concurrently, rival Moonshot AI is exploring an initial public offering in Hong Kong during the first quarter of 2027, with talks of a valuation around $50 billion. This scenario illustrates that Chinese AI startups are clashing not only in product development but also in the capital-raising arena.
Implications for Crypto Markets
This massive funding round impacts not only the AI sector but also heightens risk appetite for tech and crypto-related assets. Market participants are observing whether the shift of private capital into AI infrastructure will generate sustained demand for GPU manufacturers and the semiconductor supply chain. At the center of the debate is whether increased expenditures will be backed by revenue and productivity gains.
In the realm of crypto, the focus shifts from AI hype to the flow of capital. Large-scale AI investments might provide a supportive environment for tech stocks, AI tokens, and higher-risk digital assets. However, any reversal in investor sentiment could quickly exert pressure in these areas.
The AI race now transcends model performance, encompassing capital, computing power, customer access, and long-term application strength.
New Links Between GPU Networks and Mining
One of the strongest ties between AI and crypto emerges in decentralized GPU networks. Aethir, operating as a network connecting AI developers with distributed computing capacity, has announced its pivot to physical AI data centers by September 2026, targeting a capacity of up to 20 MW with NVIDIA B300 and GB300 clusters.
A similar trend is visible in the infrastructure supporting Bitcoin mining. According to CoinShares data, publicly traded Bitcoin miners have announced over $70 billion in AI and high-performance computing contracts. Some businesses are shifting a significant portion of their capacity from Bitcoin mining to AI data centers. CoinShares projects the share of AI in revenues generated by public miners could rise from around 30% to 70% by the end of 2026.
