DeepSeek Raises $15 Billion Amid US Ban

Approximately $15 billion, or roughly 100 billion yuan, is the reported sum that Hangzhou-based DeepSeek has secured in a new funding round. This injection of capital represents one of the largest financing events in China’s history. The timing is particularly striking because it occurred only two days after the United States mandated that federal civilian agencies remove DeepSeek’s artificial intelligence technology from their systems citing security concerns.

According to reports from Bloomberg, the investor group for this round is heavily weighted toward major Chinese tech and industrial players. Potential backers include CATL, a leading manufacturer of batteries, and Tencent, the conglomerate responsible for the WeChat messaging platform. The presence of such established corporations signals strong domestic confidence in the startup’s long-term viability despite the immediate regulatory headwinds from Washington.

This latest financial boost follows a series of significant capital raises for the company earlier in the year. In June, DeepSeek secured more than $7 billion, a deal that placed its valuation at $50 billion. Just a month later in July, the firm was reportedly seeking an additional $1.5 billion at a higher valuation of approximately $71 billion. These figures suggest a rapid acceleration in the company’s market value over a short period. Reports also indicate that DeepSeek is planning a potential initial public offering in China as early as next year.

The company is utilizing the new capital to aggressively expand its infrastructure. DeepSeek is ramping up spending on AI hardware and developing open models intended for both domestic and international markets. This strategy allows the firm to continue its global push even while navigating the specific restrictions imposed by U.S. federal agencies. Analysts suggest that this expanded footprint could intensify competition among other domestic rivals who are vying for market share in the rapidly evolving AI sector.

The $15 billion raise is part of a broader trend of massive global investment in artificial intelligence. Chinese firms are attracting billions in funding to compete in the international race. For context, Moonshot AI, the developer behind the Kimi model, raised $2 billion in May at a $20 billion valuation. Earlier this month, Manus AI secured over $500 million. Additionally, two other Chinese AI companies, Zhipu AI and MiniMax, went public in Hong Kong in January. As of today, their market capitalizations stand at roughly $29 billion and $7.2 billion, respectively.

DeepSeek was founded in 2023 by Liang Wenfeng, who previously co-founded the Chinese quantitative hedge fund High-Flyer. High-Flyer played a crucial role in financing the startup’s early development. The company first gained global attention in early 2025 when it released a free-to-use, open-weight reasoning model. This release challenged the dominance of major U.S. AI providers and established DeepSeek as a significant player in the global landscape.

Corporate ownership data analyzed by WireScreen indicates that founder Liang Wenfeng retains a significant stake in the company’s Chinese operating entity. Following the earlier funding round, he holds an estimated 81.6% of the equity. This level of control suggests that the founder maintains substantial influence over strategic decisions, including the company’s response to international regulations and its expansion plans.

The juxtaposition of a massive funding round with a simultaneous U.S. government directive to remove its software highlights the complex dynamics of the global AI market. While U.S. agencies are tightening security protocols around Chinese technology, domestic and international investors continue to back the sector with billions of dollars. DeepSeek did not immediately respond to a request for comment regarding the new funding details.

The move to raise such a substantial amount of capital so quickly after the U.S. restrictions underscores the resilience of the Chinese AI ecosystem. The company appears to be leveraging its strong domestic support to fund its infrastructure build-out and model development. This strategy aims to secure its position in both local and global markets, ensuring it remains a competitive force despite the geopolitical tensions surrounding its technology.