DeepSeek secures massive funding despite US ban

DeepSeek has reportedly closed a funding round of approximately $15 billion, a move that lands with significant weight just two days after the United States mandated that federal civilian agencies remove the company's AI tools from their systems. The primary driver behind the U.S. decision was a series of security concerns, yet the Chinese laboratory has moved swiftly to secure capital. According to Bloomberg, this new injection of cash represents one of the largest funding rounds in China's history. The reported valuation for this round sits at around $71 billion, a figure that reflects the company's growing influence despite the geopolitical friction.

The list of potential investors for this deal is heavy with well-known names from the Chinese tech and industrial sectors. CATL, a major player in the battery manufacturing space, is reported to be among those participating. Tencent, the company best known for developing the WeChat messaging platform, is also linked to the investment. The company has been on a tear with capital raises throughout the year. In June, it secured more than $7 billion at a $50 billion valuation. Shortly after that, in July, reports indicated the firm was seeking an additional $1.5 billion, which would have set the stage for a potential initial public offering in China as early as next year.

Headquartered in Hangzhou, DeepSeek is currently ramping up its spending on AI infrastructure. The company is focusing on developing open models intended for both domestic and international markets. This expansion strategy is designed to push forward even while it navigates the new restrictions imposed by its largest rival market. The increased spending is expected to intensify competition among other domestic rivals in China, who are also vying for a larger share of the global AI landscape.

This specific round is part of a broader trend where investors around the world are pouring billions into AI firms to maintain a competitive edge. China has seen similar activity recently. Moonshot AI, the developer of the Kimi chatbot, secured $2 billion in May at a $20 billion valuation. Manus AI raised more than $500 million earlier this month. On the public markets, Zhipu AI and MiniMax both went public in Hong Kong in January. As of today, their market capitalizations stand at roughly $29 billion and $7.2 billion, respectively. These figures highlight the massive scale of capital flowing into the sector.

DeepSeek was founded in 2023 by Liang Wenfeng, who previously co-founded the quantitative hedge fund High-Flyer. That earlier venture helped finance the early stages of the AI startup. The company first gained global attention in early 2025 after releasing a free-to-use, open-weight reasoning model. That release challenged the dominance of U.S. AI companies and put DeepSeek on the map for many international users. According to corporate ownership data analyzed by WireScreen, Liang retains an estimated 81.6% stake in the company's Chinese operating entity following its earlier funding activities.

The company has not yet issued an official statement regarding the new funding or the recent U.S. restrictions. A request for comment was sent to the team, but they did not immediately respond. As the firm continues to expand its infrastructure, the market will be watching closely to see how it navigates the balance between domestic growth and international expansion in the coming months.