Chinese AI Firm Lands $15B After US Ban

DeepSeek, a Chinese artificial intelligence lab, has secured roughly $15 billion in funding, a deal that comes just two days after Washington ordered federal civilian agencies to purge its technology over security concerns. According to a Bloomberg report, the capital raise amounts to about 100 billion yuan and stands as one of the largest funding rounds in the country’s history. Potential investors involved in the transaction include the battery manufacturer CATL and Tencent, the developer of the WeChat platform.

The timing of the announcement arrives amid growing geopolitical friction regarding AI technology. Just two days prior to the funding report, U.S. authorities directed federal civilian agencies to remove DeepSeek’s AI technology from their networks due to security concerns. Despite this restriction, the company has continued to expand its capital reserves significantly. DeepSeek did not immediately respond to a request for comment regarding the transaction.

This influx of capital is the latest development in a rapid sequence of financial moves by the Hangzhou-based startup. In June, the company raised over $7 billion during an investment round that valued the firm at $50 billion. By July, reports indicated DeepSeek was seeking an additional $1.5 billion at a valuation of approximately $71 billion, with plans potentially in place for an initial public offering in China as early as next year.

The new funding is intended to support significant spending on artificial intelligence infrastructure and open models for both domestic and international markets. The company is pursuing this expansion even as it faces restrictions in the United States. Such growth could further intensify the competition among domestic rivals within the Chinese market. The reported investors, including CATL and Tencent, highlight the interest from major industrial and technology firms in supporting this growth.

DeepSeek is not the only Chinese firm attracting major investment as the global race for AI dominance accelerates. In May, Moonshot AI, the developer of Kimi, secured $2 billion at a valuation of $20 billion. Earlier this month, Manus AI raised more than $500 million. Furthermore, Zhipu AI, which trades as Z.ai, and MiniMax, both of which listed in Hong Kong in January, currently hold market capitalizations of roughly $29 billion and $7.2 billion, respectively, as of today.

The startup was established in 2023 by Liang Wenfeng, who previously co-founded the Chinese quantitative hedge fund High-Flyer. That firm helped finance DeepSeek’s early development. The company gained global attention in early 2025 following the release of its free-to-use, open-weight R1 reasoning model, a release that challenged the dominance of U.S. AI companies. Following earlier funding rounds, Liang retains an estimated 81.6% stake in its Chinese operating entity, according to corporate ownership data analyzed by WireScreen.

With billions flowing into artificial intelligence companies globally, the competition for market share remains fierce. DeepSeek plans to ramp up spending on infrastructure and models for both domestic and international audiences, operating despite the restrictions imposed by U.S. authorities. The company’s expansion could further intensify competition among domestic rivals.