DeepSeek Secures $15 Billion in New Funding Amidst US Restrictions
The Hangzhou-based AI firm has closed a major financing round shortly after Washington ordered federal agencies to remove its software.
By Aiko Yamamoto ·
DeepSeek, a leading artificial intelligence laboratory based in Hangzhou, has raised approximately 15 billion dollars in new capital. This significant move comes just two days after the United States mandated that federal civilian agencies strip the company's technology from their systems due to security concerns. According to Bloomberg, this round represents one of the largest funding events in the Chinese tech sector to date.
The reported deal includes participation from prominent domestic investors. Chinese battery manufacturer CATL and Tencent, the corporation responsible for the WeChat messaging platform, are among the entities expected to contribute to the round. This influx of cash allows the startup to maintain its momentum despite the tightening regulatory environment in the West.
This latest financing builds on a rapid series of capital raises for the firm. In June, DeepSeek secured over 7 billion dollars at a 50 billion dollar valuation. Subsequently, in July, the company sought an additional 1.5 billion dollars, which would have placed its value at roughly 71 billion dollars. Reports indicate that the firm is also planning a potential initial public offering in China as early as next year.
The company intends to direct these new funds toward expanding its AI infrastructure and developing open models for both domestic and international audiences. This strategic push aims to solidify its position in the global market even while navigating U.S. restrictions. Analysts suggest that this aggressive expansion could heighten competition among other domestic AI rivals in the region.
DeepSeek's fundraising reflects a broader trend of heavy investment in artificial intelligence worldwide. Other Chinese firms have also attracted significant capital recently. Moonshot AI, the developer behind Kimi, raised 2 billion dollars at a 20 billion dollar valuation in May. Manus AI secured more than 500 million dollars earlier this month. Additionally, Zhipu AI and MiniMax, both of which went public in Hong Kong in January, currently hold market capitalizations of approximately 29 billion dollars and 7.2 billion dollars, respectively.
Founded in 2023 by Liang Wenfeng, the startup gained global recognition in early 2025 with its release of the free, open-weight R1 reasoning model. This release challenged the dominance of major U.S. AI providers. Liang previously co-founded High-Flyer, a quantitative hedge fund that helped finance DeepSeek's early stages. Corporate ownership data analyzed by WireScreen indicates that Liang retains an estimated 81.6 percent stake in the company's Chinese operating entity following the previous funding round. DeepSeek did not immediately respond to requests for comment.
Source: TechCrunch
