Tencent backs DeepSeek's $12bn raise as AI spreads through music streaming
DeepSeek is close to raising at least RMB80 billion, about USD$12 billion, in a new funding round backed by Tencent Holdings.
Bloomberg reported the figure on 6 October, and Reuters put the total at more than 80 billion yuan, or $11.93 billion. Tencent and battery maker Contemporary Amperex Technology, known as CATL, have made among the largest commitments so far, according to Bloomberg's reporting, as summarised by Music Business Worldwide.
Tencent is the controlling shareholder of Tencent Music Entertainment, or TME. That link matters for music. TME runs QQ Music, Kugou Music, Kuwo Music, WeSing and Ximalaya, some of China's largest streaming and social music services.
TME integrated DeepSeek into its streaming service in 2025. The company disclosed the work on an earnings call in March 2025. Chief executive Ross Liang said DeepSeek had been built into its AI songwriting tool, AI assistant, comment sections and recommendation pages.
In its 2024 annual report, TME said it had integrated DeepSeek's large language models, the systems trained on text to generate words, lyrics and answers, "to empower users and creators in song creation".
The money story has moved fast. Bloomberg reported that the round began with a target of around RMB50 billion, about $7.5 billion. Investor appetite increased after the release of DeepSeek's latest AI model.
Signed term sheets, the non-binding documents that set out price and size before cash changes hands, suggest the round could reach near RMB100 billion, about $15 billion. Reuters separately reported the raise is expected to close this month.
DeepSeek originally sought a valuation of around RMB500 billion, about $75 billion, in the new round. Valuation is the price tag put on a company when investors buy in. The company is targeting a stock market listing in early 2027 and is expected to restructure for it once the round closes.
Its first external fundraising closed in summer 2026 at a valuation of around RMB350 billion, about $52 billion. In that round, founder Liang Wenfeng put in around RMB20 billion, about $3 billion, of his own money. Tencent was the largest outside investor at RMB10 billion, about $1.5 billion.
Tencent's interest is not new. In April 2026 it was in talks to join an earlier DeepSeek round, with a proposal for as much as a 20% stake. Bloomberg then reported in May that a 70 billion yuan round was advancing, and in June that a deal for about 50 billion yuan was close to finalising.
What makes this stand out for listeners is the direct line from lab to playlist. Songwriting help, chat assistance and recommendations are now part of how many people find and make music. A funding round of this size decides who builds those tools, and on what terms.
