DeepSeek Funding: $15B Raised Amid US Restrictions

Approximately $15 billion. That is the amount of new capital DeepSeek has reportedly secured, a figure that places this deal among the largest funding rounds in Chinese history. The money arrives at a highly sensitive moment. It comes just two days after the United States ordered federal civilian agencies to strip DeepSeek’s technology from their infrastructure. The directive was driven by security concerns regarding the use of foreign AI tools in government operations.

Bloomberg reported the details of the deal. The list of potential investors includes heavyweights in the Chinese tech and industrial sectors. CATL, a major battery manufacturer, is expected to participate. Tencent, the corporate parent of the messaging app WeChat, is also in the mix. These backers bring significant resources and strategic reach to the table. The infusion of cash signals strong confidence in the company’s future despite the geopolitical friction.

This is not the company’s first major financial milestone. In June of this year, DeepSeek closed a round that raised more than $7 billion. At that time, the company was valued at $50 billion. The momentum did not stop there. Reports from July indicated that the firm was seeking an additional $1.5 billion. That later round would have valued the company at roughly $71 billion. There were also plans for a potential initial public offering in China as early as next year.

The new funds are earmarked for aggressive expansion. DeepSeek is based in Hangzhou and is increasing its spending on AI infrastructure. The company is also developing open models for both domestic and international markets. This strategy aims to secure a foothold globally while navigating the specific restrictions imposed by the U.S. government. The rapid scaling of operations could intensify competition among other domestic rivals in the AI space.

The broader context involves a global rush to invest in artificial intelligence. Billions of dollars are flowing into companies worldwide as they strive to maintain an edge in the race. China has seen similar activity. Moonshot AI, the developer behind the Kimi model, raised $2 billion in May. Its valuation at the time was $20 billion. Manus AI also secured more than $500 million earlier this month. Public markets have also rewarded Chinese AI firms. Zhipu AI and MiniMax both went public in Hong Kong in January. As of today, their market capitalizations stand at approximately $29 billion and $7.2 billion, respectively.

DeepSeek was founded in 2023 by Liang Wenfeng. Liang previously co-founded High-Flyer, a quantitative hedge fund that helped finance the startup’s early development. The company gained international attention in early 2025. It released a free-to-use, open-weight reasoning model that challenged the dominance of established U.S. AI companies. Corporate ownership data analyzed by WireScreen shows that Liang retains an estimated 81.6% stake in the company’s Chinese operating entity following its earlier funding rounds.

The U.S. restriction on federal use adds a layer of complexity to DeepSeek’s growth strategy. However, the company appears undeterred. The willingness of major Chinese investors to commit such a large sum suggests that the domestic market remains a critical pillar of its business model. The company is positioning itself to compete on both sides of the Pacific, leveraging its open-source approach and expanding infrastructure.

DeepSeek did not immediately respond to a request for comment regarding the funding and the timing of the U.S. restrictions. The next few months will be critical for the company. It must now integrate the new capital into its operations while navigating the regulatory landscape. The potential IPO plans for next year will likely be watched closely by investors and policymakers alike. For now, the focus remains on building capacity and maintaining its competitive edge in a rapidly evolving global market.