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DeepSeek Secures $15 Billion Funding Round Amidst U.S. Regulatory Pressure

The Chinese AI firm has closed a massive capital raise just days after Washington ordered federal agencies to remove its technology, signaling its intent to expand global operations despite new restrictions.

By Ken Adams ·

The global artificial intelligence landscape is shifting rapidly as Chinese firms continue to secure substantial capital to compete with American counterparts. In a significant development, DeepSeek has reportedly raised approximately $15 billion, a sum equivalent to about 100 billion yuan, in one of the largest funding rounds in the country's history.

This financial move occurred just two days after the United States ordered federal civilian agencies to remove DeepSeek’s AI technology from their systems due to security concerns. According to Bloomberg, the reported investors include major Chinese entities such as CATL, a leading battery manufacturer, and Tencent, the technology giant behind the WeChat messaging platform.

To understand the scale of this recent injection of capital, it is helpful to look at the company's recent financial trajectory. In June, DeepSeek completed an investment round that raised more than $7 billion, valuing the company at $50 billion. Shortly after, in July, the firm was reportedly seeking an additional $1.5 billion at a valuation of around $71 billion. These moves were part of a broader strategy that included plans for a potential initial public offering in China as early as next year.

The Hangzhou-based startup is using this new capital to accelerate spending on AI infrastructure and open models. The company aims to serve both domestic and international markets, even while navigating the newly imposed restrictions in the U.S. market. This aggressive expansion strategy is expected to intensify competition among rival AI companies within China, forcing them to match DeepSeek's pace of development and deployment.

DeepSeek's latest funding round is part of a broader trend of investors pouring billions of dollars into AI companies worldwide. This capital influx is designed to help these firms compete in the increasingly globalized AI race. Other Chinese AI developers have also seen significant financial growth recently. For instance, Moonshot AI, the developer behind the Kimi model, secured $2 billion at a $20 billion valuation in May.

Additionally, Manus AI raised more than $500 million earlier this month, further demonstrating the robust appetite for investment in the sector. Two other prominent Chinese AI firms, Zhipu AI and MiniMax, have already gone public in Hong Kong this past January. As of today, these companies hold market capitalizations of roughly $29 billion and $7.2 billion, respectively, reflecting the strong market confidence in the region's AI sector.

Founded in 2023 by Liang Wenfeng, DeepSeek emerged from the world of quantitative finance. Liang previously co-founded High-Flyer, a Chinese quantitative hedge fund that helped finance the early development of the AI startup. The company gained widespread global attention in early 2025 when it released its free-to-use, open-weight reasoning model. This release challenged the previously dominant position of U.S.-based AI companies in the global market.

Despite the rapid growth and high-profile funding, Liang Wenfeng remains the dominant figure in the company's ownership structure. Corporate ownership data analyzed by WireScreen indicates that Liang retains an estimated 81.6% stake in DeepSeek's Chinese operating entity following its earlier funding rounds. This level of control suggests that the company's strategic direction will remain closely aligned with its founder's vision.

As the company looks ahead, the combination of substantial new capital and its established market position places DeepSeek in a strong stance to expand its footprint. The firm is poised to leverage its open-model strategy to capture market share, even as it navigates the geopolitical complexities introduced by the recent U.S. federal mandates. Investors appear to be betting that DeepSeek can overcome these headwinds to maintain its momentum in the global AI race.

DeepSeek did not immediately respond to a request for comment regarding the specifics of the new funding round or its immediate plans for the capital. The company's silence comes as it prepares to integrate the new resources into its ongoing infrastructure projects, a move that will likely be closely watched by competitors and regulators alike in the coming months.

Source: TechCrunch

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