DeepSeek Reportedly Raises $15 Billion Days After US Security Order
DeepSeek reportedly raised $15 billion days after a US removal order, as CATL and Tencent weigh backing its AI infrastructure and open model expansion globally.
Summary
DeepSeek has reportedly raised about $15 billion, or 100 billion yuan, one of China’s largest funding rounds, two days after the US ordered federal civilian agencies to remove its AI technology over security concerns. Potential investors include battery maker CATL and Tencent, owner of WeChat, among others. The Hangzhou company did not immediately comment. DeepSeek raised more than $7 billion at a $50 billion valuation in June, then sought another $1.5 billion at about $71 billion in July while considering a China IPO as early as next year.
The 2023 startup plans to increase spending on AI infrastructure and open models for domestic and international markets despite US restrictions, potentially sharpening competition in China. Moonshot AI, developer of Kimi, raised $2 billion at a $20 billion valuation in May, while Manus AI raised more than $500 million earlier this month. Zhipu AI, also known as Z.ai, and MiniMax, both listed in Hong Kong in January, had market capitalizations of roughly $29 billion and $7.2 billion, respectively, on October 22, 2026.
Liang Wenfeng founded DeepSeek in 2023 after co-founding quantitative hedge fund High-Flyer, which financed its early development. DeepSeek gained global attention in early 2025 with its free-to-use, open-weight RI reasoning model, challenging US AI leaders. WireScreen’s analysis of corporate ownership data estimates Liang retained 81.6% of DeepSeek’s Chinese operating entity after the earlier round.
Positives
- The reported $15 billion round ranks among China’s largest and would give DeepSeek substantial capital for expansion.
- June’s round brought DeepSeek more than $7 billion at a $50 billion valuation.
- DeepSeek plans greater spending on AI infrastructure and open models for Chinese and international markets.
- The free-to-use, open-weight RI reasoning model gained global attention in early 2025.
- CATL and Tencent are among the potential investors in the latest round.
Risks & concerns
- US federal civilian agencies were ordered to remove DeepSeek technology over security concerns two days before the reported raise.
- DeepSeek has not commented, leaving the reported $15 billion transaction and potential investor lineup unconfirmed.
- DeepSeek’s expansion could intensify competition among Chinese AI companies already attracting multibillion-dollar investments.
