DeepSeek Secures $15 Billion Amidst U.S. Regulatory Shifts
The Chinese artificial intelligence laboratory closed a major capital raise just days after federal agencies were ordered to eliminate its software from government systems.
By Malcolm Davis ·
DeepSeek, the prominent Chinese artificial intelligence laboratory, has secured approximately $15 billion in new funding. This substantial capital injection comes at a highly sensitive moment, occurring only two days after the United States directed federal civilian agencies to remove DeepSeek's technology from their networks. The move underscores the company's continued financial momentum despite emerging geopolitical tensions.
The valuation and size of this round mark it as one of the largest funding events in China's history. The sum of roughly 100 billion yuan signals strong investor confidence in the sector. This latest round follows a previous investment in June, during which the company raised more than $7 billion at a $50 billion valuation. Additionally, reports indicated that DeepSeek was seeking an extra $1.5 billion in July at a valuation near $71 billion, with eyes set on a potential initial public offering in China as early as next year.
Key financial backers in this new round reportedly include CATL, a leading Chinese battery manufacturer, and Tencent, the technology giant behind the WeChat messaging platform. These entities represent significant industrial and digital infrastructure players in the region. Their participation suggests a broad coalition of support for DeepSeek's ongoing expansion and technological development.
The Hangzhou-based startup intends to utilize these funds to accelerate spending on AI infrastructure and open models for both domestic and international markets. This strategic push continues even as the company navigates new restrictions in the United States. Such aggressive expansion is expected to heighten competition among domestic rivals, forcing other Chinese AI firms to match DeepSeek's pace of innovation and resource allocation.
This capital raise is part of a wider trend of global investors committing billions to AI companies to maintain competitiveness in the global race. Other Chinese firms have also seen significant financial activity recently. Moonshot AI, the developer of Kimi, secured $2 billion at a $20 billion valuation in May. Manus AI raised over $500 million earlier this month. Furthermore, Zhipu AI and MiniMax, which both listed in Hong Kong in January, currently hold market capitalizations of approximately $29 billion and $7.2 billion, respectively.
Liang Wenfeng founded DeepSeek in 2023. He previously co-founded the Chinese quantitative hedge fund High-Flyer, which provided early financial backing for the startup. The company gained worldwide attention in early 2025 when it released a free, open-weight reasoning model that challenged the dominance of American AI providers. Corporate ownership data indicates that Liang retains an estimated 81.6% stake in the company's Chinese operating entity following its earlier funding rounds. DeepSeek has not yet responded to requests for comment regarding the new funding round.
Source: TechCrunch
