US Ban Fails to Dent DeepSeek's $15B Fundraising Push

Just two days after the U.S. government ordered federal civilian agencies to strip DeepSeek’s artificial intelligence software from their systems, the Chinese company announced it has secured a staggering $15 billion in new funding. This capital raise, equivalent to roughly 100 billion yuan, marks one of the largest funding rounds ever recorded in China. The timing suggests that American security concerns have not spooked investors looking to back Beijing's push into high-tech development.

According to reports from Bloomberg, the financial backers for this round are set to include heavyweights from China's domestic industrial sector. CATL, a major battery manufacturer, and Tencent, the technology giant behind the WeChat messaging app, are among the potential investors. The massive influx of cash comes as the United States moves to limit DeepSeek’s influence within its own federal infrastructure, citing security concerns.

The new capital follows a period of aggressive financial maneuvering by the Hangzhou-based startup. In June, DeepSeek completed a funding round that brought in more than $7 billion at a valuation of $50 billion. By July, the company was reportedly seeking an additional $1.5 billion, with the goal of raising its valuation to approximately $71 billion. DeepSeek is also reportedly planning a potential initial public offering in China as soon as next year.

Despite the restrictions placed on its technology by U.S. authorities, DeepSeek is moving to expand its global footprint. The company is increasing its spending on artificial intelligence infrastructure and developing open models for both domestic and international markets. This growth strategy is expected to heighten competition among AI developers within China, as DeepSeek pushes deeper into markets that rival Chinese startups are also trying to capture.

The scale of DeepSeek's raise reflects a broader surge in investment activity within the Chinese artificial intelligence sector. Moonshot AI, the developer of the Kimi model, secured $2 billion at a $20 billion valuation back in May. Another firm, Manus AI, raised more than $500 million earlier this month. Furthermore, companies like Zhipu AI and MiniMax, which both listed on the Hong Kong exchange in January, currently hold market capitalizations of roughly $29 billion and $7.2 billion, respectively.

DeepSeek was established in 2023 by Liang Wenfeng. Liang previously co-founded High-Flyer, a Chinese quantitative hedge fund that provided financing for the AI lab during its initial stages. The company rose to global prominence in early 2025 with the release of its free-to-use, open-weight R1 reasoning model, which challenged the market dominance of U.S. AI firms. Following previous funding rounds, Liang retains an estimated 81.6% stake in the Chinese operating entity.

As the U.S. moves to restrict access to DeepSeek technology for federal agencies, the company's financial position is growing stronger. The recent $15 billion raise indicates that capital continues to flow into Chinese AI startups. DeepSeek did not immediately respond to a request for comment regarding the funding or the U.S. restrictions.