DeepSeek Raises $15 Billion Amid US Technology Restrictions

Chinese AI lab DeepSeek has reportedly raised approximately $15 billion, or about 100 billion yuan, in one of the country's largest funding rounds, according to Bloomberg. This significant investment occurred just two days after the U.S. ordered federal civilian agencies to remove DeepSeek’s AI technology from their systems due to security concerns, TechCrunch reported.

Potential investors in this round include Chinese battery maker CATL and Tencent, the company behind WeChat. This latest funding follows DeepSeek’s investment round in June, when it secured over $7 billion at a valuation of $50 billion. The Hangzhou-based AI startup was also reportedly seeking an additional $1.5 billion in July at a valuation of around $71 billion, with plans for a potential IPO in China as early as next year.

The company is ramping up spending on AI infrastructure and open models for both domestic and international markets, even as it faces restrictions in the U.S. This expansion is expected to intensify competition among domestic rivals. The massive funding round underscores a global trend of investors pouring billions into AI companies, including those in China, to compete in the global AI race. Other Chinese AI firms have also seen substantial investments: Kimi developer Moonshot AI secured $2 billion at a $20 billion valuation in May, and Manus AI raised over $500 million earlier this month. Zhipu AI and MiniMax, which went public in Hong Kong in January, currently hold market capitalizations of roughly $29 billion and $7.2 billion, respectively.

DeepSeek was founded in 2023 by Liang Wenfeng, who previously co-founded Chinese quantitative hedge fund High-Flyer, which helped finance DeepSeek’s early development. The AI startup gained global attention in early 2025 with its free-to-use, open-weight RI reasoning model, challenging the dominance of US AI companies. Corporate ownership data analyzed by WireScreen indicates Liang still retains an estimated 81.6% stake in DeepSeek’s Chinese operating entity following its earlier funding round. DeepSeek did not immediately respond to a TechCrunch request for comment.

What to watch: DeepSeek's potential IPO next year.

Editor's note: The article effectively incorporates the financial details, ownership data, and context regarding the US security restrictions provided in the source.