$15 Billion Raised by DeepSeek Amid US Restrictions

The most consequential development in the current AI landscape is that DeepSeek has secured approximately $15 billion in new funding, a sum equal to roughly 100 billion yuan. This injection of capital represents one of the largest funding rounds ever recorded for a Chinese technology company. The timing of this financial move is striking, arriving just 48 hours after the United States mandated that federal civilian agencies strip DeepSeek’s artificial intelligence technology from their internal systems due to security concerns.

The financial details indicate a significant acceleration in valuation and capital acquisition for the Hangzhou-based startup. According to reports, potential investors for this new round include CATL, a major Chinese battery manufacturer, and Tencent, the tech giant behind the WeChat messaging platform. This follows a previous round in June of this year, where the company raised over $7 billion at a $50 billion valuation. In July, the firm was reportedly seeking an additional $1.5 billion at a higher valuation of approximately $71 billion, with discussions underway regarding a potential initial public offering in China as early as next year.

The company’s leadership is anchored by founder Liang Wenfeng, who established DeepSeek in 2023. Liang previously co-founded the quantitative hedge fund High-Flyer, which provided crucial early-stage financing for the AI venture. Corporate ownership data analyzed by WireScreen indicates that Liang retains an estimated 81.6% stake in the company’s Chinese operating entity, a position maintained even after the earlier funding rounds. The startup first gained global prominence in early 2025 when it released its free-to-use, open-weight R1 reasoning model, a move that directly challenged the market dominance of established U.S. AI firms.

DeepSeek is currently directing its resources toward expanding AI infrastructure and developing open models for both domestic and international markets. This strategic expansion is occurring despite the recent regulatory headwinds in the United States. The company’s aggressive growth trajectory is expected to intensify competition among its domestic rivals in China. DeepSeek did not immediately respond to requests for comment regarding the new funding and the timing of the U.S. restrictions.

This capital raise is part of a broader trend of global investors pouring billions into AI firms to secure a position in the competitive race. In May, Moonshot AI, the developer of the Kimi model, secured $2 billion at a $20 billion valuation. Earlier this month, Manus AI raised more than $500 million. Additionally, Chinese AI companies Zhipu AI (Z.ai) and MiniMax, both of which listed on the Hong Kong stock exchange in January, currently hold market capitalizations of approximately $29 billion and $7.2 billion, respectively, as of today.

The stakes for the global AI market are high as these firms scale rapidly. While the U.S. has tightened its stance on security by removing DeepSeek from federal civilian networks, the company’s ability to raise such substantial capital suggests a resilient investor base. The next few months will likely see continued investment in Chinese AI infrastructure, driven by the goal of competing effectively on the world stage.