DeepSeek Secures $15 Billion War Chest Amid US Pullback
The Hangzhou-based AI lab has closed a massive funding round involving major Chinese tech and industrial players just days after Washington mandated its removal from federal systems.
By Brianna Jackson ·
DeepSeek has locked in approximately $15 billion in new capital, a sum equivalent to roughly 100 billion yuan, marking one of the largest private funding rounds in Chinese history. This financial boost arrives at a pivotal moment for the Hangzhou-based startup, landing just two days after the United States directed federal civilian agencies to strip the company’s AI technology from their infrastructure due to security concerns. The move signals a strong commitment from investors to back the lab despite the geopolitical headwinds it now faces in the West.
According to Bloomberg, the new money is coming from a heavyweight group of potential backers. The list includes CATL, a dominant force in the Chinese battery manufacturing sector, and Tencent, the tech giant known for operating the WeChat messaging platform. These investors are joining an existing cohort that already provided significant support to the company earlier this year.
The current raise builds directly on DeepSeek’s rapid financial momentum over the past few months. In June, the lab secured more than $7 billion at a $50 billion valuation. By July, reports indicated the company was seeking an additional $1.5 billion, which would have pushed its valuation to approximately $71 billion. These capital injections have been part of a broader strategy that included plans for a potential initial public offering in China as early as next year.
With the new funds in hand, DeepSeek is accelerating its expansion into AI infrastructure and the development of open models for both domestic and international audiences. The company aims to intensify competition among its domestic rivals while simultaneously expanding its global footprint. This aggressive spending comes even as the firm navigates the immediate impact of the U.S. restrictions, suggesting a strategy of doubling down on growth rather than retreating.
DeepSeek’s latest raise is part of a wider trend of billions of dollars flowing into AI ventures worldwide as the global race for technological supremacy intensifies. In China, the investment climate remains robust. Moonshot AI, the developer behind the Kimi model, raised $2 billion at a $20 billion valuation in May. More recently, Manus AI secured over $500 million earlier this month. Additionally, Zhipu AI and MiniMax, both of which listed in Hong Kong in January, currently hold market capitalizations of roughly $29 billion and $7.2 billion, respectively.
Founded in 2023 by Liang Wenfeng, a former co-founder of the quantitative hedge fund High-Flyer, DeepSeek quickly gained global prominence. The company challenged the dominance of established U.S. AI providers in early 2025 with its free-to-use, open-weight reasoning model. Corporate ownership data analyzed by WireScreen 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 capital.
As the company moves forward, the interplay between its expanding capabilities in China and its restricted status in the U.S. will likely define its next phase. The sheer scale of the recent funding suggests that investors are confident in DeepSeek’s ability to maintain its competitive edge, regardless of the regulatory environment in other key markets.
Source: TechCrunch
