DeepSeek Secures $15 Billion Round Amid US Security Review

The timing of this funding round is impossible to ignore.

Chinese AI startup DeepSeek has reportedly closed a deal for approximately 15 billion dollars, or about 100 billion yuan. Bloomberg reported that this is one of the largest funding events in the country's history. The news broke just two days after the United States directed federal civilian agencies to remove DeepSeek's technology from their networks. That government action was driven by security concerns regarding the firm's software.

To understand the speed of this financial move, it helps to look at the recent history. DeepSeek is based in Hangzhou and was founded in 2023 by Liang Wenfeng. Liang previously co-founded High-Flyer, a quantitative hedge fund that helped bankroll the startup's early days. The company first gained global attention in early 2025. It released a free, open-weight reasoning model that challenged the dominance of American AI giants. That momentum led to a significant investment round in June, where the firm raised over 7 billion dollars at a 50 billion dollar valuation.

Momentum continued through the summer. Reports indicated that the company was seeking an additional 1.5 billion dollars in July. At that time, the valuation was around 71 billion dollars. There were also plans for a potential initial public offering in China as early as next year. According to corporate ownership data analyzed by WireScreen, Liang Wenfeng retains an estimated 81.6 percent stake in the Chinese operating entity following those earlier rounds.

Now, with this new 15 billion dollar infusion, the company is set to ramp up spending. The funds are intended for AI infrastructure and open models aimed at both domestic and international markets. This expansion comes even as the firm faces restrictions in the U.S. market. The move is likely to intensify competition among its domestic rivals in China.

The reported investors include major industry players. CATL, a well-known Chinese battery maker, is among the potential backers. Tencent, the company behind the WeChat messaging app, is also reported to be involved. These names signal strong confidence from established tech and industrial leaders in the region.

This round is part of a broader trend of billions flowing into AI companies globally. Investors are eager to position themselves in the race for artificial intelligence supremacy. Other Chinese firms have seen similar surges. Moonshot AI, the developer of Kimi, secured 2 billion dollars at a 20 billion dollar valuation in May. Manus AI raised more than 500 million dollars earlier this month.

Public markets are also reflecting this growth. Zhipu AI and MiniMax both went public in Hong Kong in January. As of today, their market capitalizations stand at roughly 29 billion dollars and 7.2 billion dollars, respectively. These figures highlight the substantial value being placed on Chinese AI assets.

As for what happens next, DeepSeek will likely use the capital to expand its infrastructure. It faces the challenge of competing in a global market while navigating U.S. regulatory hurdles. The company did not immediately respond to a request for comment on the new funding round.