DeepSeek Secures $15 Billion Amidst New U.S. Government Restrictions
The Hangzhou-based AI firm closed a massive funding round shortly after Washington ordered its technology removed from federal civilian systems.
By Yasmin Farouk ·
DeepSeek, the Hangzhou-based artificial intelligence laboratory, has reportedly raised approximately $15 billion, or 100 billion yuan, in a new financing round. This transaction represents one of the largest funding events in China’s technology sector to date. The capital injection occurred just two days after the United States directed federal civilian agencies to eliminate DeepSeek’s AI technology from their infrastructure due to identified security concerns.
According to Bloomberg, the round involves a coalition of prominent backers, including Chinese battery manufacturer CATL and Tencent, the corporate entity behind the WeChat messaging platform. This latest infusion follows a previous investment cycle in June, during which the company secured over $7 billion at a valuation of $50 billion. In July, reports indicated that DeepSeek was seeking an additional $1.5 billion at a valuation of roughly $71 billion, with strategic plans for a potential initial public offering in China as early as the following year.
The startup is currently increasing its expenditure on AI infrastructure and open models intended for both domestic and international markets, despite the emerging regulatory hurdles in the U.S. This aggressive expansion is expected to heighten competitive pressure among its domestic rivals. The broader trend reflects a global surge in capital flowing toward AI firms, with Chinese competitors also securing significant sums. For instance, Moonshot AI, the developer of Kimi, raised $2 billion at a $20 billion valuation in May, while Manus AI secured over $500 million earlier this month. Additionally, Zhipu AI and MiniMax, which both listed on the Hong Kong stock exchange in January, currently hold market capitalizations of approximately $29 billion and $7.2 billion, respectively.
Founded in 2023 by Liang Wenfeng, a former co-founder of the quantitative hedge fund High-Flyer, DeepSeek gained significant global traction in early 2025. The company challenged the dominance of U.S. AI providers by releasing a free-to-use, open-weight reasoning model. Corporate ownership data analyzed by WireScreen indicates that Liang maintains an estimated 81.6% stake in the company’s Chinese operating entity following the earlier funding activities.
The timing of this substantial raise underscores the continued confidence investors place in AI ventures within China, even as geopolitical tensions affect operations in Western markets. The move signals a strategic push to solidify its position in the global AI race through expanded capabilities and infrastructure.
Source: TechCrunch
