DeepSeek Closes $15B Deal Amid U.S. Tech Restrictions

Just 48 hours after the United States ordered federal civilian agencies to strip DeepSeek’s artificial intelligence software from their systems over security concerns, the Chinese startup announced it has secured approximately $15 billion. The funding, which totals roughly 100 billion yuan, stands as one of the largest capital raises in China’s history. This sudden influx of capital marks a sharp turn in the company’s fortunes following the U.S. ban, signaling continued strong confidence in its technology despite geopolitical friction.

The financing event, reported by Bloomberg, is drawing significant interest from heavyweights within the Chinese industrial and tech sectors. Potential contributors to the round include battery manufacturer CATL and Tencent, the technology giant behind the WeChat messaging platform. The report indicates that DeepSeek is ramping up spending on artificial intelligence infrastructure and open models designed for both domestic and international markets, even as it faces restrictions in the U.S. This expansion could further intensify competition among domestic rivals.

This recent capital raise follows a busy year for the Hangzhou-based company. In June, the firm raised more than $7 billion at a valuation of $50 billion. By July, reports indicated the company was seeking an additional $1.5 billion at a higher valuation of around $71 billion. The company also has plans for a potential IPO in China as early as next year.

The massive funding round is the latest sign of investors pouring billions into AI companies around the world, including those in China, to compete in the global AI race. Chinese company Kimi developer Moonshot AI secured $2 billion at a $20 billion valuation in May. Manus AI raised more than $500 million earlier this month. Meanwhile, Chinese companies Zhipu AI (Z.ai) and MiniMax, which both went public in Hong Kong in January, have market capitalizations of roughly $29 billion and $7.2 billion, respectively, as of today.

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 R1 reasoning model, challenging the dominance of U.S. AI companies. Liang retains an estimated 81.6% stake in its Chinese operating entity following its earlier funding round, according to corporate ownership data analyzed by WireScreen.

DeepSeek did not immediately respond to a request for comment.

Looking ahead, the company plans to use these resources to build out the infrastructure required to train and deploy its open models. While the U.S. government has moved to restrict DeepSeek's presence in federal systems, the company is preparing for a potential IPO in China as early as next year.