U.S.- China AI race heats up as Chinese rivals secure billions ahead of IPOs
Several major AI firms in the U.S. and China are lining up multibillion-dollar private financings and public listings as competition intensifies. Reports say China’s DeepSeek and Moonshot have secured large valuations and backers ahead of planned IPOs in early 2027, while OpenAI and Anthropic are pursuing very large funding or listing moves in the U.S.
Why It Matters
Large private raises and IPO plans signal continued heavy investor appetite for leading AI model developers and could reshape capital flows and market positions in the U.S.–China AI rivalry. These financings involve record-scale valuations and could influence who controls key AI models and infrastructure going forward.
Key Facts
- DeepSeek target raise: At least $12 billion, with demand possibly pushing it to about $15 billion
- DeepSeek backers: Tencent and battery maker CATL
- DeepSeek IPO timing: Targeting an initial public offering in early 2027
- DeepSeek product update: Recently released V4 Flash model that Bloomberg says improves cost and performance versus rivals
- Moonshot valuation: Completed final private round at a $50 billion valuation (company behind the Kimi chatbot)
Artificial intelligence companies on both sides of the Pacific are seeking very large private financings and preparing public listings as investor interest in model development remains strong. Bloomberg reported that China’s DeepSeek is approaching a fundraising round of at least $12 billion, with demand that could lift the total to roughly $15 billion. The company’s backers in the round include Tencent and battery maker CATL, and DeepSeek is aiming for an IPO in early 2027. The firm recently launched its V4 Flash model, which Bloomberg says improves its competitiveness on cost and performance relative to OpenAI and Anthropic.
Moonshot AI, known for its Kimi chatbot, has completed a final private funding round that values the company at about $50 billion. Moonshot is targeting a Hong Kong initial public offering in the first quarter of 2027 that could raise up to $5 billion. The company expects annual recurring revenue to reach $2 billion by December, roughly double its current level, according to the report.
In the United States, OpenAI has been reported to be courting large investors as it pursues a multibillion-dollar financing: the firm is seeking at least $30 billion at a reported $1.4 trillion pre-money valuation. Bloomberg named potential participants including BlackRock and some UAE sovereign or investment funds that together could contribute up to $10 billion. Separately, Anthropic is said to be eyeing a November IPO after the U.S. midterm elections, at a possible valuation around $2 trillion.
Taken together, the moves underscore how major AI developers are using both private capital and public markets to finance development of ever-larger models. The scale of the reported rounds and valuations highlights the intensity of the competition between U.S. and Chinese companies for leadership in advanced AI model capabilities and commercial deployments.
Keep Reading
Type One Energy raised $200M to build a fusion power plant by 2034
Facebook tests going Reels-first in India
Flai’s AI dealership software is booking 50,000 appointments per month
