DeepSeek Secures Massive $15 Billion Funding Round
The Chinese AI lab closed a significant capital raise two days after Washington ordered federal agencies to drop its software.
By Mateo Thompson ·
DeepSeek, the Hangzhou-based artificial intelligence laboratory, has raised approximately 15 billion dollars in new capital. This funding round, equivalent to roughly 100 billion yuan, stands as one of the largest financial injections in the Chinese technology sector. The move comes just two days after the United States government directed federal civilian agencies to eliminate DeepSeek’s AI tools from their systems due to security concerns.
The timeline of recent events highlights the rapid pace of developments for the startup. In June, the company closed a previous round that brought in more than 7 billion dollars at a valuation of 50 billion dollars. By July, reports indicated that DeepSeek was seeking an additional 1.5 billion dollars with a valuation near 71 billion dollars. The company also outlined plans for a potential initial public offering in China as early as next year. Now, in late October, this new 15 billion dollar raise signals a major acceleration in its financial strategy despite the recent diplomatic friction.
Bloomberg reported that potential investors in this latest round include CATL, a major Chinese battery manufacturer, and Tencent, the company behind the WeChat messaging platform. Other undisclosed parties are also believed to be participating. This influx of capital allows DeepSeek to continue expanding its presence in both domestic and international markets, even while navigating the restrictions imposed by the U.S. government. The company is reportedly increasing its spending on AI infrastructure and developing open models to maintain its competitive edge.
The broader context of this funding reflects a global trend where investors are pouring billions into AI firms to secure a position in the global race. In China specifically, activity has been intense. Moonshot AI, the developer of the Kimi model, secured 2 billion dollars at a 20 billion dollar valuation in May. Earlier this month, Manus AI raised over 500 million dollars. Meanwhile, Zhipu AI and MiniMax, which both went public in Hong Kong in January, currently hold market capitalizations of approximately 29 billion dollars and 7.2 billion dollars, respectively, as of today.
DeepSeek was established in 2023 by Liang Wenfeng, who previously co-founded the quantitative hedge fund High-Flyer. That fund provided the initial financial backing for the startup. The company gained significant global attention in early 2025 after releasing its free, open-weight reasoning model. This release challenged the dominance of established U.S. AI providers. According to corporate ownership data analyzed by WireScreen, Liang retains an estimated 81.6 percent stake in the company’s Chinese operating entity following the earlier funding round.
The new capital is expected to intensify competition among domestic rivals as DeepSeek ramps up its operations. The funding provides the resources necessary to scale its technology and expand its market reach. Despite the recent U.S. directive to remove its technology from federal systems, the confidence shown by major investors suggests that DeepSeek remains a central player in the global AI landscape. The company did not immediately respond to a request for comment regarding the new funding details.
