DeepSeek Raises Billions Amid New US Curbs
The Hangzhou-based AI firm secured massive capital shortly after Washington ordered its removal from federal systems.
By Neha Iyer ·
A major capital infusion has arrived for a Chinese artificial intelligence laboratory at a pivotal moment in its regulatory history. According to reports from Bloomberg, DeepSeek has raised approximately fifteen billion dollars, a sum equivalent to one hundred billion yuan. This transaction stands as one of the largest funding rounds in the nation's history and occurred with notable timing.
The funding was secured just two days after the United States directed federal civilian agencies to eliminate DeepSeek technology from their infrastructure. This administrative move was driven by security concerns regarding the integration of foreign AI tools into government systems. The proximity of these events suggests a strategic response by the company and its backers to the shifting geopolitical landscape.
Bloomberg identified several prominent entities as potential investors in this round. The list includes CATL, a leading manufacturer of batteries in China, and Tencent, the technology conglomerate responsible for the popular messaging platform WeChat. Other unnamed parties are also reported to be participating in the financing.
This latest round follows a series of significant financial milestones for the startup. In June, DeepSeek raised over seven billion dollars at a valuation of fifty billion dollars. Subsequent reports indicated that in July, the company was seeking an additional one and a half billion dollars at a valuation near seventy-one billion dollars. At that time, plans were also emerging for a potential initial public offering in China as early as next year.
The Hangzhou-based startup is reportedly increasing its expenditure on AI infrastructure and open models. These investments target both domestic and international markets despite the ongoing restrictions in the United States. Analysts suggest that this expansion could further intensify competition among rival AI firms within China, pushing the industry toward rapid development.
The transaction highlights a broader trend of substantial global investment in artificial intelligence. Chinese firms have been active participants in this race, with Moonshot AI, the developer of Kimi, securing two billion dollars at a twenty billion dollar valuation in May. Earlier this month, Manus AI raised over five hundred million dollars. Additionally, Zhipu AI and MiniMax, which both listed in Hong Kong in January, currently hold market capitalizations of approximately twenty-nine billion dollars and seven point two billion dollars, respectively.
DeepSeek was established in 2023 by Liang Wenfeng, who previously co-founded the quantitative hedge fund High-Flyer. That hedge fund provided crucial financing for the startup's early development. The company gained international prominence in early 2025 by releasing a free, open-weight reasoning model, a move that challenged the prevailing dominance of American AI providers. Corporate ownership data analyzed by WireScreen indicates that Liang retains an estimated eighty-one point six percent stake in the Chinese operating entity following the earlier funding round.
As of this week, DeepSeek has not immediately responded to requests for comment regarding the new funding round or the recent regulatory changes in the United States.
Source: TechCrunch
