U.S.-China AI Rivalry Intensifies as Chinese Firms Raise Billions Ahead of IPOs

Chinese artificial intelligence companies are attracting billions of dollars in fresh funding as they prepare for potential stock market listings, highlighting the growing financial stakes in the competition between the U.S. and China to build increasingly powerful AI models.

DeepSeek is reportedly approaching a funding round of at least $12 billion, with Tencent and battery manufacturer CATL among the backers, according to Bloomberg. The company is preparing for a potential IPO in early 2027, while strong investor demand could lift the fundraising total to roughly $15 billion, above its original target.

The financing comes after DeepSeek launched its V4 Flash model, which improved the company’s ability to compete with OpenAI and Anthropic on both cost and performance.

Moonshot AI, the developer of the Kimi chatbot, has also completed what is expected to be its final private funding round at a $50 billion valuation. The company is targeting a Hong Kong listing during the first quarter of 2027 and could raise as much as $5 billion through the IPO.

Moonshot’s business is also expanding rapidly. Its annual recurring revenue is projected to reach $2 billion by December, which would be twice its current level.

The fundraising race extends beyond China. OpenAI was reported last week to be seeking at least $30 billion in new capital at a $1.4 trillion pre-money valuation after delaying its IPO plans.

Bloomberg’s latest report named potential investors in the OpenAI round, including BlackRock and funds from the United Arab Emirates. Together, those investors could provide as much as $10 billion.

Meanwhile, Anthropic is emerging as another major potential IPO candidate. The company is reportedly considering a November listing, after the U.S. midterm elections, at a possible valuation of around $2 trillion.

The fundraising and listing plans underline how rapidly private AI companies are reaching valuations and capital requirements once associated with the world’s largest technology firms, as investors continue placing major bets on the next generation of AI.