DeepSeek Funding: A Multi-Billion Dollar Round Amidst US Tensions
The Chinese AI lab secured a massive investment days after Washington ordered agencies to purge its software, signaling continued domestic confidence.
By Noor Haddad ·
In a move that underscores the widening rift between Washington’s security apparatus and the global technology market, the Chinese artificial intelligence lab DeepSeek has reportedly secured approximately $15 billion in new funding. This development comes just two days after the United States directed federal civilian agencies to remove DeepSeek’s technology from their systems due to security concerns.
The transaction, reported by Bloomberg, involves the exchange of roughly 100 billion yuan. Potential investors cited in the report include major Chinese conglomerates such as battery manufacturer CATL and Tencent, the parent company of WeChat. This capital injection follows a previous round in June, where the company raised over $7 billion at a valuation of $50 billion. It also comes after a July initiative in which DeepSeek was reportedly seeking an additional $1.5 billion at a valuation of approximately $71 billion.
The Hangzhou-based startup, founded in 2023 by Liang Wenfeng, is utilizing these resources to expand its spending on artificial intelligence infrastructure and open models for both domestic and international markets. Liang, who previously co-founded the quantitative hedge fund High-Flyer, retains an estimated 81.6% stake in the company’s Chinese operating entity. Despite the recent U.S. restrictions, DeepSeek is ramping up its capabilities, a move that could intensify competition with domestic rivals.
The scale of DeepSeek’s raise highlights the aggressive capital flow into the artificial intelligence sector globally and specifically within China. For comparison, Moonshot AI, the developer of Kimi, secured $2 billion in May at a $20 billion valuation, while Manus AI raised over $500 million earlier this month. Furthermore, Chinese companies Zhipu AI and MiniMax, which listed in Hong Kong in January, currently hold market capitalizations of roughly $29 billion and $7.2 billion respectively.
DeepSeek previously gained international notoriety in early 2025 by releasing its free-to-use, open-weight R1 reasoning model, which challenged the dominance of U.S. AI companies. As of October 22, the company has not provided a comment regarding the reported funding round or its potential IPO plans in China.
Source: TechCrunch
