DeepSeek raises billions right after US ban

The tension in the global AI race hit a new peak this week. The United States ordered federal civilian agencies to strip DeepSeek technology from their networks due to security fears. Just forty-eight hours later, the Chinese startup announced it had raised approximately $15 billion. This sum, equivalent to about 100 billion yuan, marks one of the largest funding rounds in China's history. The timing suggests the company is not slowing down despite the regulatory headwinds from its biggest rival market.

Bloomberg reports that potential backers for this new round include major Chinese tech and industrial names. CATL, a leading battery manufacturer, is expected to participate. Tencent, the giant behind the WeChat messaging app, is also listed among the prospective investors. The move signals strong domestic confidence in the firm's long-term viability and strategic importance.

This new cash injection follows a busy few months for DeepSeek. In June, the company closed a round of more than $7 billion. That deal valued the firm at $50 billion. By July, reports indicated the startup was seeking another $1.5 billion. At that time, the valuation had climbed to around $71 billion. The company has also been planning a potential initial public offering in China, with talks suggesting a listing could happen as early as next year.

DeepSeek is based in Hangzhou. The company is using its growing capital to expand its infrastructure for AI. It is developing open models aimed at both domestic and international customers. This expansion continues even as it faces restrictions in the United States. The aggressive spending is likely to heighten competition among other AI firms operating in China. Rivals will need to respond to a player that is scaling up rapidly.

The broader trend shows investors pouring billions into AI ventures worldwide. China is a major hub for this capital flow. Moonshot AI, the developer of the Kimi model, raised $2 billion in May. That round valued the company at $20 billion. Manus AI also secured funding earlier this month, bringing in more than $500 million. Two other major players, Zhipu AI and MiniMax, went public in Hong Kong in January. As of today, their market capitalizations stand at roughly $29 billion and $7.2 billion, respectively.

The company was founded in 2023 by Liang Wenfeng. He previously co-founded High-Flyer, a quantitative hedge fund in China. High-Flyer provided the initial financial backing for DeepSeek's early days. The startup gained global attention in early 2025. It released a free, open-weight reasoning model. This move challenged the dominance of major U.S. AI providers. According to corporate ownership data analyzed by WireScreen, Liang retains an estimated 81.6% stake in the company's Chinese operating entity.

The next steps for DeepSeek appear clear. It plans to continue its infrastructure buildout. The company aims to solidify its position in the domestic market while maintaining a presence abroad. A potential IPO remains on the horizon. For now, the massive raise provides the financial cushion needed to navigate the current geopolitical landscape. DeepSeek did not immediately respond to requests for comment on the new funding details.