DeepSeek Secures $15 Billion Boost Amidst U.S. Digital Exit
The Hangzhou-based AI firm closed a massive funding round just 48 hours after Washington mandated its removal from federal civilian systems.
By Tariq Mahmoud ·
Two days after the United States ordered federal civilian agencies to strip DeepSeek’s artificial intelligence technology from their infrastructure, the Chinese startup has reportedly secured a new investment of approximately $15 billion. This sum, equivalent to roughly 100 billion yuan, represents one of the largest funding events in the nation's history, according to a report by Bloomberg.
The move signals a significant acceleration in DeepSeek’s financial capacity despite the abrupt regulatory shift in its key international market. The report identifies potential backers for this latest round as including major Chinese industrial players. Among the listed entities are CATL, a leading battery manufacturer, and Tencent, the corporation responsible for the WeChat messaging platform.
This capital injection follows a rapid sequence of financial milestones for the company. In June, DeepSeek raised more than $7 billion at a valuation of $50 billion. By July, the firm was reportedly seeking an additional $1.5 billion at a higher valuation of around $71 billion. These steps appear to be part of a broader strategy that includes plans for a potential initial public offering in China as early as next year.
Despite facing new restrictions in the U.S. market, the Hangzhou-based firm is increasing its expenditure on AI infrastructure and open models. The company aims to serve both domestic and international clients, a strategy that could intensify competition among its domestic rivals. The timing of the raise highlights the aggressive pace at which global investors are committing billions to AI ventures, particularly those based in China, to remain competitive in the global tech race.
The broader investment climate in China reflects this trend. Moonshot AI, the developer behind the Kimi model, secured $2 billion at a $20 billion valuation in May. Earlier this month, Manus AI raised over $500 million. Additionally, two other Chinese firms, Zhipu AI and MiniMax, which went public in Hong Kong in January, currently hold market capitalizations of roughly $29 billion and $7.2 billion, respectively, as of today.
Founded in 2023 by Liang Wenfeng, DeepSeek leverages resources from High-Flyer, the quantitative hedge fund co-founded by Liang, which helped finance the startup’s early stages. The company gained worldwide recognition in early 2025 by releasing a free, open-weight reasoning model that challenged the dominance of American AI firms. Following its previous funding rounds, Liang retains an estimated 81.6% stake in the company’s Chinese operating entity, according to corporate ownership data analyzed by WireScreen.
DeepSeek has not yet responded to requests for comment regarding the new funding round or its implications for its operations in the United States.
Source: TechCrunch
