DeepSeek Nabs Billions in Capital Despite Recent Washington Security Ban

DeepSeek, the Hangzhou-based artificial intelligence laboratory, has reportedly secured approximately $15 billion in new financing, a massive capital injection arriving just two days after Washington moved to restrict the company's technology within federal systems. This round, reported to be around 100 billion yuan, stands as one of the largest recent funding events in the nation's tech sector.

Potential backers for this specific round include major domestic players such as the battery manufacturer CATL and Tencent, the parent company behind WeChat. This capital infusion arrives shortly after U.S. federal civilian agencies were ordered to purge DeepSeek's AI tools from their networks due to security concerns, a directive issued to mitigate potential risks associated with the software.

The current valuation reflects a rapid escalation for the startup. In June, DeepSeek raised more than $7 billion at a $50 billion valuation. By July, reports indicated the company was seeking an additional $1.5 billion at a valuation near $71 billion, with plans for a potential IPO in China as early as next year. The company is now ramping up spending on AI infrastructure and open models for domestic and international markets, even as it faces restrictions in the U.S., the report said. Its expansion could further intensify competition among domestic rivals.

Despite the reported fundraising, questions remain regarding the finalization of the deal and the company's response to recent regulatory actions. DeepSeek did not immediately respond to a request for comment regarding the security concerns or the new investment figures. The reported funding follows DeepSeek’s investment round in June, when it raised more than $7 billion at a valuation of $50 billion. The company was also reportedly seeking an additional $1.5 billion at a valuation of around $71 billion in July, with plans for a potential IPO in China as early as next year. The Hangzhou-based AI startup is ramping up spending on AI infrastructure and open models for domestic and international markets, even as it faces restrictions in the U.S., the report said. Its expansion could further intensify competition among domestic rivals. 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 RI 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.

The reported funding follows DeepSeek’s investment round in June, when it raised more than $7 billion at a valuation of $50 billion. The company was also reportedly seeking an additional $1.5 billion at a valuation of around $71 billion in July, with plans for a potential IPO in China as early as next year. The Hangzhou-based AI startup is ramping up spending on AI infrastructure and open models for domestic and international markets, even as it faces restrictions in the U.S., the report said. Its expansion could further intensify competition among domestic rivals. 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 RI 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.

The reported funding follows DeepSeek’s investment round in June, when it raised more than $7 billion at a valuation of $50 billion. The company was also reportedly seeking an additional $1.5 billion at a valuation of around $71 billion in July, with plans for a potential IPO in China as early as next year. The Hangzhou-based AI startup is ramping up spending on AI infrastructure and open models for domestic and international markets, even as it faces restrictions in the U.S., the report said. Its expansion could further intensify competition among domestic rivals. 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 RI 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.