DeepSecures $15 Billion as U.S. Orders Removal of Its AI Tools

The Chinese AI sector continues to move at a rapid pace despite growing geopolitical friction. Just two days after the United States ordered federal civilian agencies to strip DeepSeek’s technology from their systems, the Hangzhou-based startup reportedly closed a funding round of approximately $15 billion.

This infusion of capital, equivalent to roughly 100 billion yuan, marks one of the largest investment events in the country’s history. According to reports from Bloomberg, the deal includes participation from major Chinese tech and industry players. Notable potential investors cited in the coverage include CATL, a leading battery manufacturer, and Tencent, the company that operates the WeChat messaging platform.

This latest round builds upon a significant financial momentum that has characterized DeepSeek’s recent history. In June of this year, the company raised more than $7 billion at a valuation of $50 billion. By July, reports indicated that DeepSeek was seeking an additional $1.5 billion, which would have placed its valuation at approximately $71 billion. These moves were part of a broader strategy that included plans for a potential initial public offering in China as early as next year.

The timing of this capital raise is notable given the recent regulatory shifts in Washington. U.S. authorities mandated the removal of DeepSeek’s AI tools from federal civilian networks due to security concerns. Despite this headwind, the startup is reportedly accelerating its spending on AI infrastructure. The company aims to expand its portfolio of open models for both domestic and international markets, a move that could further intensify competition among its rivals within China.

DeepSeek’s fundraising is part of a wider trend of global investors pouring billions into artificial intelligence firms to maintain a competitive edge in the AI race. In May, Moonshot AI, the developer behind the Kimi assistant, secured $2 billion at a $20 billion valuation. Earlier this month, Manus AI raised over $500 million. Furthermore, Chinese firms Zhipu AI and MiniMax, both of which went public in Hong Kong in January, currently hold market capitalizations of roughly $29 billion and $7.2 billion, respectively.

The company was founded in 2023 by Liang Wenfeng, who previously co-founded High-Flyer, a Chinese quantitative hedge fund that helped finance DeepSeek’s early stages. The startup gained significant global attention in early 2025 when it released its free-to-use, open-weight reasoning model. This release challenged the dominance of established U.S. AI companies and put DeepSeek on the map as a major global player.

Ownership structures indicate that founder Liang retains a substantial influence over the company. Following the earlier funding round, corporate ownership data analyzed by WireScreen shows that Liang holds an estimated 81.6% stake in the company’s Chinese operating entity. This level of control suggests that strategic decisions, including the recent capital raise and infrastructure expansion, will remain closely aligned with the founder’s vision.

As DeepSeek moves forward, the company faces the dual challenge of scaling its operations while navigating the complex landscape of international trade and security regulations. The entry of heavyweight investors like Tencent and CATL signals strong confidence in the firm’s long-term prospects, even as it works to establish a foothold in markets where U.S. restrictions are increasingly common.

DeepSeek did not immediately respond to a request for comment regarding the specifics of the new funding round or its strategic plans for the upcoming year.