DeepSeek Secures $15 Billion in Funding Amidst New US Export Controls

DeepSeek, the Hangzhou-based artificial intelligence laboratory, has reportedly secured approximately $15 billion in new capital. This significant financial injection comes at a critical juncture, occurring only two days after the United States mandated that federal civilian agencies remove the company’s AI technology from their operational systems due to security concerns.

According to Bloomberg, the funding round, valued at roughly 100 billion yuan, stands as one of the largest in the history of Chinese technology. The move signals a strong commitment from investors to back the firm despite the escalating geopolitical friction between Washington and Beijing. The reported backing includes major domestic players such as CATL, a leading battery manufacturer, and Tencent, the corporation behind the popular WeChat messaging platform.

This latest round of investment builds upon a series of rapid financial expansions over the past few months. In June of this year, DeepSeek raised over $7 billion, placing its valuation at $50 billion. Just a month later in July, the company was reportedly seeking an additional $1.5 billion at a higher valuation of approximately $71 billion. These consecutive rounds suggest a strategy aimed at positioning the firm for a potential initial public offering in China as early as next year.

The influx of capital is expected to fuel DeepSeek’s aggressive spending on AI infrastructure. The company is focusing on developing open models designed for both domestic and international markets. This expansion comes as the firm navigates new limitations in the U.S. market, aiming to maintain its global footprint while intensifying competition among other domestic AI rivals.

The $15 billion raise is indicative of a broader trend where investors are pouring billions into AI ventures worldwide to secure a competitive edge in the global race. In China specifically, other major players have also attracted substantial sums. Moonshot AI, the developer of the Kimi model, secured $2 billion at a $20 billion valuation in May. Additionally, Manus AI raised over $500 million earlier this month, highlighting the sustained investor appetite for the sector.

Public market performance in the region also reflects this optimism. Zhipu AI, also known as Z.ai, and MiniMax both listed on the Hong Kong stock exchange in January. As of today, their market capitalizations stand at roughly $29 billion and $7.2 billion, respectively, underscoring the robust valuation environment for Chinese AI firms.

Founded in 2023 by Liang Wenfeng, the company’s origins are tied to the quantitative hedge fund High-Flyer, which co-founded by Liang provided early financing for DeepSeek. The startup gained significant global recognition in early 2025 by releasing a free, open-weight reasoning model, a move that challenged the dominance of established U.S. AI providers. Following its earlier funding activities, Liang is estimated to retain an 81.6% stake in the company’s Chinese operating entity, according to corporate ownership data analyzed by WireScreen.

As of this week, DeepSeek has not immediately responded to requests for comment regarding the new funding round or the recent U.S. regulatory actions affecting its presence in federal systems.