DeepSeek Secures $15 Billion Funding Round
The Chinese AI laboratory closed a massive capital raise shortly after Washington mandated the removal of its software from federal civilian systems.
By Tunde Adeyemi ·
Approximately 100 billion yuan, equivalent to $15 billion, has been raised by the Hangzhou-based artificial intelligence lab DeepSeek, marking one of the largest funding events in China’s tech sector. This significant capital injection arrives with remarkable timing, just two days after the United States government ordered federal civilian agencies to strip DeepSeek’s technology from their networks due to security concerns. According to Bloomberg, which first reported the figures, the move signals a robust commitment to the company’s expansion despite geopolitical friction.
The reported round involves a consortium of high-profile backers. Among the potential investors identified in the report are CATL, a major Chinese battery manufacturer, and Tencent, the technology conglomerate responsible for the WeChat messaging platform. The inclusion of these giants suggests a strategic alignment between DeepSeek and other pillars of the Chinese digital economy.
This latest valuation surge builds on a trajectory of rapid growth seen earlier this year. In June, DeepSeek secured over $7 billion in funding at a valuation of $50 billion. Subsequently, in July, the company reportedly sought an additional $1.5 billion at a valuation approaching $71 billion. These financial milestones have kept the company on a path toward a potential initial public offering in China as early as next year.
The new capital is expected to fuel aggressive spending on AI infrastructure and the development of open-source models. DeepSeek aims to serve both domestic and international markets, pushing forward its expansion even while navigating the new restrictions imposed by Washington. This aggressive posture is likely to intensify competition among rivals within China’s own AI ecosystem.
The $15 billion raise underscores a broader global trend of massive investment flows into artificial intelligence firms. Investors are pouring billions into companies worldwide to secure a competitive edge in the global AI race. In China specifically, the momentum is evident in recent deals involving peers. Moonshot AI, the developer of the Kimi chatbot, secured $2 billion at a $20 billion valuation in May. More recently, Manus AI raised over $500 million earlier this month.
Public market valuations for Chinese AI firms also reflect this heightened interest. Zhipu AI, operating under the ticker Z.ai, and MiniMax both listed in Hong Kong in January. As of today, their market capitalizations stand at approximately $29 billion and $7.2 billion, respectively, indicating sustained investor confidence in the sector.
DeepSeek was established in 2023 by Liang Wenfeng, a former co-founder of the quantitative hedge fund High-Flyer. High-Flyer provided the financial backing for DeepSeek’s early development. The startup gained global prominence in early 2025 by releasing a free, open-weight reasoning model that challenged the market dominance of American AI firms. 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 a request for comment regarding the new funding round. As the company moves forward with its infrastructure plans, the interplay between its rapid financial growth and the tightening regulatory environment in the United States will remain a focal point for tech observers in New England and beyond.
Source: TechCrunch
