U.S.- China AI race heats up as Chinese rivals secure billions ahead of IPOs
Chinese AI firms like DeepSeek and Moonshot AI are securing massive funding rounds ahead of planned 2027 IPOs, intensifying the global AI race. Meanwhile, U.S. giants like OpenAI and Anthropic are also preparing for significant capital raises and public listings.
Why it matters
The massive capital influx into AI companies signals a high-stakes global competition for market dominance in generative AI models between the U.S. and China.
Artificial intelligence companies are continuing to pursue multibillion-dollar funding rounds and stock market listings, as investors continue to pour capital into the race to develop more powerful models as the race between U.S. and China continues.
China’s DeepSeek is nearing a funding round of at least $12 billion, backed by Tencent and battery maker CATL, ahead of a planned IPO in early 2027, according to a report by Bloomerg . Demand could push the raise to around $15 billion, exceeding its initial target.
The financing follows the release of DeepSeek’s V4 Flash model, which strengthened its competitiveness against OpenAI and Anthropic on cost and performance.
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