DeepSeek Secures $15 Billion as U.S. Orders Its Tech Removed from Federal Systems

The financial move signals a major escalation in the global artificial intelligence race.

Chinese AI startup DeepSeek has reportedly secured approximately $15 billion, or roughly 100 billion yuan, in a funding round that ranks among the largest ever recorded in China. This significant capital injection arrived just two days after the United States directed federal civilian agencies to strip DeepSeek’s technology from their systems, citing security concerns. The timing underscores the resilience of the Hangzhou-based firm despite increasing geopolitical friction.

According to reports from Bloomberg, the investor lineup for this latest round includes major Chinese corporate entities. Notably, CATL, a leading manufacturer of batteries, and Tencent, the tech giant behind the popular messaging app WeChat, are among the potential backers. Their participation suggests a broad coalition of domestic support for the AI lab as it continues to expand its operations.

This new capital follows a rapid succession of financial milestones for the company. In June of this year, DeepSeek raised over $7 billion at a valuation of $50 billion. Shortly thereafter, in July, the company was reportedly seeking an additional $1.5 billion, which would have valued the firm at approximately $71 billion. These moves were accompanied by plans for a potential initial public offering in China as early as next year, indicating a clear trajectory toward a major public market debut.

With the new funds, DeepSeek intends to accelerate spending on AI infrastructure and the development of open models aimed at both domestic and international audiences. The company is determined to maintain its competitive edge despite the restrictive measures currently in place in the United States. Analysts suggest that this aggressive expansion could further intensify competition among DeepSeek’s domestic rivals, forcing other Chinese AI firms to step up their own investments and innovation efforts to keep pace.

The fundraising round highlights a broader trend of investors pouring billions into AI companies worldwide, with a particular focus on China as a key player in the sector. Other Chinese firms have also seen significant capital inflows recently. Moonshot AI, the developer of the Kimi model, secured $2 billion at a $20 billion valuation in May. Additionally, Manus AI raised more than $500 million earlier this month, demonstrating sustained investor confidence in the region’s AI ecosystem.

Public markets have also reflected this momentum. Zhipu AI, known as Z.ai, and MiniMax, both of which went public in Hong Kong in January, have seen their market capitalizations grow substantially. As of this week, Zhipu AI holds a market value of roughly $29 billion, while MiniMax stands at approximately $7.2 billion. These figures illustrate the scale at which Chinese AI companies are being valued by global investors.

DeepSeek was founded in 2023 by Liang Wenfeng, who previously co-founded the Chinese quantitative hedge fund High-Flyer. That fund played a crucial role in financing DeepSeek’s early development. The startup gained worldwide attention in early 2025 when it released a free-to-use, open-weight reasoning model that challenged the dominance of U.S.-based AI competitors. Corporate ownership data analyzed by WireScreen indicates that Liang retains an estimated 81.6% stake in the company’s Chinese operating entity following its earlier funding rounds.

DeepSeek did not immediately respond to a request for comment regarding the new funding round.