DeepSeek Secures $15 Billion Just Days After US Agency Mandates Removal
The Chinese AI lab closed a massive funding round despite new federal security restrictions, signaling continued global competition in artificial intelligence.
By Ama Boateng ·
DeepSeek has raised approximately $15 billion in new capital, a move that underscores its aggressive expansion strategy despite fresh geopolitical headwinds.
The Hangzhou-based artificial intelligence firm secured the funding just two days after the United States ordered federal civilian agencies to strip DeepSeek’s technology from their systems. This rapid capital injection comes amid heightened security concerns in Washington regarding the Chinese developer's software.
According to a report from Bloomberg, the investment round totals roughly 100 billion yuan. The deal represents one of the largest funding events in the country's tech sector history. Potential backers for this massive raise include major Chinese entities such as CATL, a leading battery manufacturer, and Tencent, the tech giant behind the WeChat messaging platform.
This latest round follows a significant capital raise in June, when DeepSeek secured over $7 billion at a valuation of $50 billion. In July, the company was reportedly seeking an additional $1.5 billion at a valuation near $71 billion. These moves align with plans for a potential initial public offering in China as early as next year.
Despite the recent U.S. restrictions, DeepSeek is increasing its spending on AI infrastructure and open models. The company aims to serve both domestic and international markets, a strategy that could intensify competition among its domestic rivals. The funding round highlights the broader trend of investors pouring billions into AI firms globally to stay competitive in the race for technological superiority.
Other Chinese AI companies have also seen substantial capital inflows recently. Moonshot AI, the developer behind the Kimi model, raised $2 billion in May at a $20 billion valuation. Earlier this month, Manus AI secured more than $500 million. Meanwhile, Zhipu AI and MiniMax, which both listed on the Hong Kong stock exchange in January, currently hold market capitalizations of approximately $29 billion and $7.2 billion, respectively.
Founded in 2023 by Liang Wenfeng, DeepSeek emerged from the co-founder’s previous venture, the quantitative hedge fund High-Flyer, which helped bankroll the startup's early development. The company gained widespread global attention in early 2025 by releasing a free, open-weight reasoning model that challenged the dominance of established U.S. AI providers. Corporate ownership data analyzed by WireScreen indicates that Liang retains an estimated 81.6% stake in the company's Chinese operating entity following its prior funding rounds.
DeepSeek did not immediately respond to a request for comment regarding the new funding round and the concurrent U.S. regulatory actions.
Source: TechCrunch
