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DeepSeek Secures Reported $15B Days After U.S. Federal Ban

Chinese AI lab DeepSeek has secured about $15 billion, or roughly 100 billion yuan, in one of China’s largest funding rounds, according to Bloomberg. The deal comes just two days after the U.S. ordered federal civilian agencies to remove DeepSeek’s AI technology from their systems over security concerns.

Potential investors reportedly include battery maker CATL and WeChat owner Tencent. The round follows a June raise of more than $7 billion at a $50 billion valuation, and reports in July that the company was seeking a further $1.5 billion at around $71 billion, with a possible Chinese IPO as early as next year.

The Hangzhou-based startup is increasing investment in AI infrastructure and open models for domestic and international markets despite U.S. restrictions, a move that could intensify competition among Chinese rivals. Other Chinese AI players have also drawn heavy investment, with Moonshot AI securing $2 billion at a $20 billion valuation in May and Manus AI raising over $500 million this month.

DeepSeek was founded in 2023 by Liang Wenfeng, co-founder of quantitative hedge fund High-Flyer, which financed its early work. The company drew global attention in early 2025 with its free, open-weight R1 reasoning model. Liang reportedly retains an estimated 81.6% stake in its Chinese operating entity.

James Dargan
About the author
James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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