DeepSeek Secures $15 Billion in Funding Amid New US Restrictions
The Chinese AI lab has closed a massive capital raise just two days after Washington ordered federal agencies to disconnect from its technology.
By Ahmed Mansour ·
DeepSeek, the Hangzhou-based artificial intelligence developer, has reportedly secured approximately $15 billion in new investment. This substantial capital raise, valued at around 100 billion yuan, places the funding round among the largest in China’s history. The move comes at a significant moment, occurring just 48 hours after the United States directed federal civilian agencies to remove DeepSeek’s AI tools from their networks due to security concerns.
The influx of capital is expected to fuel DeepSeek’s rapid expansion in both domestic and international markets. According to reports, the company is increasing its expenditure on AI infrastructure and open-source models. This aggressive growth strategy aims to strengthen its position against global competitors, even while navigating the newly imposed limitations within the U.S. market. The expansion is likely to intensify competition among other AI developers operating in China.
Several major players in the Chinese technology and manufacturing sectors are reported to be involved in this investment round. Potential backers include Tencent, the tech giant that operates the popular messaging app WeChat, and CATL, a leading battery manufacturer. Their participation signals strong confidence in DeepSeek’s long-term viability and its ability to compete on a global scale despite geopolitical headwinds.
This latest raise follows a period of intense financial activity for the startup. In June, DeepSeek completed a previous funding round of over $7 billion, which valued the company at $50 billion. Subsequently, in July, reports indicated that the firm was seeking an additional $1.5 billion at a higher valuation of approximately $71 billion. These financial moves have been part of a broader strategy that includes plans for a potential initial public offering in China as early as next year.
DeepSeek’s trajectory has been marked by rapid growth since its founding in 2023 by Liang Wenfeng. Liang previously co-founded High-Flyer, a quantitative hedge fund that provided the initial financial backing for the AI startup. The company gained significant global attention in early 2025 when it released a free, open-weight reasoning model. This release challenged the dominance of established U.S. AI firms and accelerated the global race for AI leadership.
The current funding environment reflects a broader trend of massive investments in artificial intelligence worldwide. Chinese competitors have also attracted substantial capital recently. Moonshot AI, the developer of the Kimi model, raised $2 billion at a $20 billion valuation in May. Meanwhile, Manus AI secured over $500 million earlier this month. Publicly traded Chinese AI firms Zhipu AI and MiniMax, which listed in Hong Kong in January, currently hold market capitalizations of roughly $29 billion and $7.2 billion, respectively.
Corporate ownership data indicates that founder Liang Wenfeng retains a significant influence over the company’s direction. He is estimated to hold an 81.6% stake in DeepSeek’s Chinese operating entity following its earlier funding activities. This level of ownership suggests that despite the new external investment, the founder maintains substantial control over the company’s strategic decisions and operational execution.
As DeepSeek integrates this new capital, it faces the dual task of expanding its technical capabilities while managing the implications of the recent U.S. restrictions. The company did not immediately respond to requests for comment regarding the specific terms of the deal or its immediate next steps. The outcome of this funding round will likely serve as a key indicator of how Chinese AI firms adapt to shifting international regulatory landscapes.
Source: TechCrunch
