DeepSeek Funding: A $15 Billion Boost Amid US Restrictions

Seventeen days is a long time in politics, but two days is a blink in the AI market. That was the gap between Washington ordering federal civilian agencies to strip DeepSeek’s technology from their systems and the Chinese startup announcing a massive capital raise. The lab is reportedly securing approximately $15 billion. In local currency, that figure stands at about 100 billion yuan. This makes it one of the largest funding rounds in China’s history. The news landed just as U.S. officials moved to distance government systems from the company due to security concerns.

The move signals strong confidence despite the geopolitical friction. According to reports, potential investors include major Chinese tech and industrial players. CATL, a leading battery manufacturer, is listed among them. So is Tencent, the company that owns the WeChat messaging app. Other unnamed entities are also part of the reported deal. This influx of cash comes quickly on the heels of previous financial milestones for the firm.

DeepSeek has been raising money at an accelerating pace recently. In June of this year, the company closed a round exceeding $7 billion. At that time, its valuation stood at $50 billion. By July, reports indicated the startup was seeking an additional $1.5 billion. That later round implied a valuation of roughly $71 billion. These figures suggest the company is preparing for a significant public offering in China as early as next year.

The Hangzhou-based startup is using the new capital to expand its reach. It is ramping up spending on AI infrastructure and developing open models. These efforts target both domestic and international markets. The company continues to push forward even while facing specific restrictions in the United States. Analysts suggest this aggressive expansion could intensify competition among its domestic rivals in the region.

This funding round is part of a broader global trend. Investors are pouring billions into AI companies worldwide to stay competitive in the race. In China, other firms have also seen significant financial activity. Moonshot AI, the developer of Kimi, secured $2 billion in May at a $20 billion valuation. Manus AI raised over $500 million earlier this month. Additionally, Zhipu AI and MiniMax, both of which went public in Hong Kong in January, now hold market capitalizations of roughly $29 billion and $7.2 billion, respectively.

DeepSeek was founded in 2023 by Liang Wenfeng. He previously co-founded High-Flyer, a Chinese quantitative hedge fund that helped finance the startup’s early days. The company gained global attention in early 2025. Its free-to-use, open-weight reasoning model challenged the dominance of U.S. AI firms. Liang retains an estimated 81.6% stake in the company’s Chinese operating entity, according to corporate ownership data. DeepSeek did not immediately respond to requests for comment.