DeepSeek Secures $15 Billion in New Funding Amid US Government Scrutiny
The Chinese AI lab has closed one of its largest funding rounds to date, even as Washington moves to limit its use in federal systems.
By Kendra Konchanuk ·
For the average user interacting with artificial intelligence tools, this development signals that the technology is becoming more entrenched in the global economy, regardless of geopolitical friction. Two days after the United States directed federal civilian agencies to remove DeepSeek’s software from their systems due to security concerns, the Hangzhou-based company announced it has raised approximately $15 billion. This infusion of capital, equivalent to roughly 100 billion yuan, marks one of the largest funding events in China’s tech sector.
The timing of this financial boost is notable. It follows a rapid sequence of events where U.S. regulators tightened their stance on Chinese AI, yet DeepSeek continued to attract significant investment. According to reports from Bloomberg, the new round includes participation from major Chinese tech and industrial players. Specifically, potential investors identified in the report include CATL, a leading battery manufacturer, and Tencent, the corporation behind the popular messaging app WeChat.
To understand the scale of this latest move, it helps to look at the company’s recent financial history. In June, DeepSeek completed an investment round that brought in over $7 billion, valuing the company at $50 billion. Just one month later, in July, the startup was reportedly seeking another $1.5 billion at a higher valuation of around $71 billion. At that time, there were also discussions about a potential initial public offering in China as early as next year.
With this new capital, DeepSeek plans to expand its operations significantly. The company is increasing its spending on AI infrastructure and developing open models intended for both domestic and international audiences. This aggressive expansion strategy comes at a time when the firm is navigating restrictions in the U.S. market. Analysts suggest that this growth could intensify competition among other AI developers within China, forcing rivals to step up their own efforts.
DeepSeek is not alone in this wave of massive funding. The recent surge in investment reflects a broader global trend where billions are being poured into AI companies to maintain a competitive edge. For context, Moonshot AI, the developer of the Kimi model, secured $2 billion at a $20 billion valuation in May. Additionally, Manus AI raised over $500 million earlier this month. Meanwhile, Zhipu AI and MiniMax, which both listed on the Hong Kong stock exchange in January, currently hold market capitalizations of roughly $29 billion and $7.2 billion, respectively.
The company’s origins trace back to 2023, when it was founded by Liang Wenfeng. Liang previously co-founded High-Flyer, a quantitative hedge fund that provided the initial financial backing for DeepSeek. The startup gained widespread global recognition in early 2025 after releasing a free, open-weight reasoning model that challenged the prevailing dominance of American AI firms. Following its earlier funding activities, Liang retains an estimated 81.6% stake in the company’s Chinese operating entity. DeepSeek did not immediately respond to requests for comment regarding the latest funding round.
Source: TechCrunch
