DeepSeek Closes $15 Billion Round Amid U.S. Pushout

DeepSeek, the Hangzhou-based artificial intelligence laboratory, has reportedly raised approximately $15 billion, a sum equivalent to roughly 100 billion yuan. This transaction stands as one of the largest funding rounds ever recorded for a company within China. The timing of this capital injection is particularly notable, arriving just two days after the United States directed federal civilian agencies to remove DeepSeek’s technology from their internal networks due to security concerns.

According to reports from Bloomberg, the investor lineup for this massive round includes prominent figures in the Chinese tech and industrial sectors. CATL, a leading manufacturer of batteries, and Tencent, the corporation behind the popular messaging app WeChat, are among the potential backers. This influx of cash allows the startup to continue its aggressive expansion despite the geopolitical headwinds currently affecting its presence in the Western market.

This latest financial milestone builds upon a series of significant fundraising events earlier this year. In June, DeepSeek secured more than $7 billion in funding at a valuation of $50 billion. Subsequently, in July, the company was reportedly looking to raise an additional $1.5 billion at a higher valuation of approximately $71 billion. These moves suggest a clear trajectory toward a potential initial public offering in China, which could occur as early as next year.

The company intends to deploy these new funds to accelerate spending on AI infrastructure and the development of open models. These efforts are aimed at serving both domestic and international markets, even while navigating the specific restrictions imposed by the U.S. government. Analysts suggest that DeepSeek’s continued growth and resource allocation could intensify competition among its domestic rivals, forcing them to match its pace of innovation and deployment.

The $15 billion raise is part of a broader global trend where investors are committing billions of dollars to AI firms, particularly in China, to maintain competitiveness in the race for technological dominance. Other Chinese AI companies have also seen significant financial activity recently. For instance, Moonshot AI, the developer of the Kimi model, raised $2 billion at a $20 billion valuation in May. Additionally, Manus AI secured over $500 million earlier this month, while Zhipu AI and MiniMax, both of which went public in Hong Kong in January, now hold market capitalizations of roughly $29 billion and $7.2 billion, respectively.

Founded in 2023 by Liang Wenfeng, DeepSeek has quickly become a global player. Liang previously co-founded High-Flyer, a quantitative hedge fund that provided early financial support to the startup. The company gained worldwide attention in early 2025 by releasing a free-to-use, open-weight reasoning model that challenged the dominance of established U.S. AI providers. Corporate ownership data indicates that Liang retains an estimated 81.6% stake in the company’s Chinese operating entity following its previous funding rounds. DeepSeek did not immediately respond to requests for comment regarding the new funding.