DeepSeek, a major player in China’s artificial intelligence sector, is set to raise at least 80 billion yuan ($12 billion) in a pre-IPO funding round that may reach as high as 100 billion yuan ($15 billion), far exceeding its original 50 billion yuan ($7 billion) target. The round is reportedly drawing significant backing from leading investors such as Tencent Holdings, which operates WeChat, and battery giant Contemporary Amperex Technology Co. Ltd. (CATL), marking one of the largest private fundraising efforts in China’s AI industry to date.
Major expansion plans and IPO preparations
This funding momentum comes on the heels of DeepSeek’s launch of its V4 Flash AI model. With the funds, the company plans to expand its computing infrastructure significantly, including the deployment of at least 160,000 advanced AI accelerators from Huawei Technologies in a new data center located in Inner Mongolia.
The company’s larger goal is to scale up its AI capabilities and enhance competitiveness against both domestic and global AI contenders. With this new capital, DeepSeek is also expected to finalize an internal restructuring in preparation for a prospective IPO on Shanghai’s STAR Market, potentially as early as 2027.
As the competition within China’s AI market heats up, rival Moonshot AI is reportedly planning a Hong Kong listing in the first quarter of 2027, aiming for a $50 billion valuation.
Mini dictionary: STAR Market, also known as the Science and Technology Innovation Board, is a Shanghai-based stock exchange designed to facilitate capital raising for tech-driven high-growth companies in China.
Implications for AI infrastructure and cryptocurrency
Industry observers view DeepSeek’s fundraising as a potential signal of increasing investment in AI infrastructure, with market participants closely tracking whether these large capital inflows are translating into rising demand for GPUs and semiconductor equipment. Analysts from Noon Strategy have suggested that major funding rounds in the AI sector offer insights into future capital spending, especially for companies tied to the GPU supply chain.
Large-scale investments in AI infrastructure may foreshadow revenue growth and shifts in market valuations among both traditional tech firms and crypto projects involved in supporting AI workloads.
For cryptocurrency investors, capital flows into the AI sector could influence risk appetite across broader technology markets. Market participants such as MANDOCT believe the current phase of the AI race extends beyond performance, representing a battle for resources—investment capital, computing power, and customers—which could have a direct impact on trading activity in AI-focused tokens and technology stocks.
Some traders are now drawing a direct parallel between surging AI fundraising and fluctuations in Bitcoin prices. PradoTonipe10 has pointed out that as billions are funneled into DeepSeek and OpenAI, Bitcoin has approached the $87,000 mark, suggesting large investors may be reallocating capital ahead of wider market moves.
Convergence of AI and crypto infrastructure
The interplay between AI and crypto is most evident in decentralized GPU networks. Projects like Aethir are connecting AI developers with distributed computing resources, aiming to deliver scalable, affordable infrastructure by leveraging blockchain principles. In September 2026, Aethir revealed plans to expand into physical AI data centers capable of providing up to 20 MW of capacity and featuring high-performance NVIDIA B300 and GB300 clusters.
Mini dictionary: Aethir is a decentralized cloud computing platform connecting unused GPU resources with AI developers, enabling the sharing and monetization of computing power across a distributed network.
There is also a growing connection between Bitcoin mining infrastructure and AI. CoinShares found that publicly listed Bitcoin miners have announced more than $70 billion in cumulative AI and high-performance computing contracts, with some shifting resources from Bitcoin mining towards supporting AI data centers. The firm estimates that AI-related activities could generate up to 70% of listed miners’ revenue by the end of 2026, a significant jump from the current 30%.
| Company | Current AI Revenue Share | Projected AI Revenue Share (2026) |
|---|---|---|
| Publicly listed Bitcoin miners | 30% | 70% |
These developments present new opportunities for crypto investors, not only through AI tokens but also via investments in companies and protocols offering GPU, data center, and cloud computing services for AI workloads.
Publicly listed Bitcoin miners are increasingly shifting capacity to AI and high-performance computing contracts, potentially transforming their revenue streams over the next two years.
