U.S.- China AI race heats up as Chinese rivals secure billions ahead of IPOs

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.

Moonshot AI, the company behind the Kimi chatbot, has completed its final private funding round at a $50 billion valuation meanwhile. It is targeting a Hong Kong IPO in the first quarter of 2027 that could raise up to $5 billion. Annual recurring revenue is expected to reach $2 billion by December, double its current level.

OpenAI’s plans to raise at least $30 billion at a $1.4 trillion pre-money valuation were reported last week, following its IPO delay. Bloomberg’s latest report identifies potential investors, including BlackRock and UAE funds, which could collectively contribute up to $10 billion.

The big news of Q4 is Anthropic is eyeing an IPO in November, after the U.S. midterm elections, at a potential valuation of around $2 trillion.