China’s DeepSeek Raises $15 Billion to Accelerate AI Push Despite U.S. Block

The global race for artificial intelligence dominance is intensifying at a rapid pace. Just two days after the United States ordered federal civilian agencies to remove DeepSeek’s technology from their systems, the Chinese AI lab raised approximately 15 billion dollars.

This massive infusion of capital, equivalent to about 100 billion yuan, stands as one of the largest funding rounds in China’s history. The move signals a strong commitment to the company’s future despite the immediate regulatory headwinds in its primary Western market. Bloomberg reported the figures, highlighting the sheer scale of the investment.

The investor group behind this round is heavyweight. It reportedly includes CATL, a major Chinese battery manufacturer, and Tencent, the tech giant behind the WeChat messaging platform. These firms are joining a broader coalition of backers willing to pour billions into the sector. The inclusion of such diverse and powerful entities suggests a strategic bet on DeepSeek’s long-term viability and market share.

This latest round follows a streak of significant financial activity for the startup. In June, DeepSeek raised more than 7 billion dollars at a valuation of 50 billion dollars. By July, reports indicated the company was seeking an additional 1.5 billion dollars at a higher valuation of around 71 billion dollars. At that time, the firm also outlined plans for a potential initial public offering in China as early as next year. The consistent flow of capital underscores the confidence investors place in the company’s trajectory.

The company is currently based in Hangzhou and is increasing its spending on AI infrastructure. It is focusing on developing open models for both domestic and international markets. This expansion strategy aims to solidify its position globally, even as it navigates the new restrictions imposed by Washington. The aggressive spending could further intensify competition among its domestic rivals in the Chinese market.

DeepSeek’s funding is part of a broader trend of investors committing billions to AI companies worldwide. In May, Moonshot AI, the developer behind the Kimi chatbot, secured 2 billion dollars at a 20 billion dollar valuation. Earlier this month, Manus AI raised more than 500 million dollars. Public markets are also reflecting this growth. Zhipu AI and MiniMax, both of which went public in Hong Kong in January, now hold market capitalizations of roughly 29 billion dollars and 7.2 billion dollars, respectively. These figures illustrate the current valuation landscape for leading Chinese AI firms.

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

The U.S. government’s decision to remove DeepSeek’s technology from federal civilian agency systems was driven by security concerns. This action occurred just 48 hours before the news of the 15 billion dollar raise broke. The timing highlights the complex relationship between geopolitical tensions and technological advancement. It also shows how quickly financial moves can follow regulatory shifts in the high-stakes world of AI.