Chinese AI developer DeepSeek is close to closing a funding round of at least 80 billion yuan (about $12 billion), Bloomberg reported on 6 October. Tencent, the internet group that controls Tencent Music Entertainment, is said to be among the largest backers, along with battery maker CATL. Neither company commented, and DeepSeek did not respond.
“As the industry evolves, we continue to champion copyright protection, foster a healthy ecosystem, and safeguard the value of creative work.”
Cussion Pang, Executive Chairman, Tencent Music Entertainment, in Tencent Music's Q2 2026 results · musicbusinessworldwide.com ↗
The round has already passed its first target of roughly 50 billion yuan, and signed term sheets are reportedly heading toward 100 billion yuan. DeepSeek first sought a valuation near 500 billion yuan (around $75 billion), though the terms could still shift. A summer round put it at about 350 billion yuan, with founder Liang Wenfeng contributing around 20 billion and Tencent the largest outside investor at 10 billion. Reuters says the deal should close this month, after which DeepSeek would restructure and aim for a stock listing in early 2027, possibly on Shanghai's STAR Market.
Portrait of DeepSeek's founder, used by Tech Startups
South China Morning Post · Image: Tech Startups
The music angle is Tencent Music, owner of QQ Music, Kugou, Kuwo, WeSing and Ximalaya. It disclosed on its March 2025 earnings call that DeepSeek is built into its AI songwriting tool, assistant, comment sections and recommendation pages. Its latest results also describe AI agents that assemble playlists in QQ Music and Kugou Music.
DeepSeek has a rougher history with the music business. The publishers' body ICMP accused it in January 2025 of using protected lyrics without licences, and its director general shared a video he said showed the chatbot reproducing songs by Taylor Swift and Ed Sheeran. Tencent Music says it backs copyright protection.