DeepSeek raises $15B despite U.S. restrictions

DeepSeek raised $15 billion in funding just two days after the U.S. ordered federal agencies to remove its AI technology from their systems. This massive round follows a $7 billion investment in June that valued the company at $50 billion. The Hangzhou-based AI startup is expanding its infrastructure and open models for global markets, even as it faces restrictions in the U.S. Its growth could intensify competition among domestic rivals in China.

The funding comes at a time when investors are pouring billions into AI companies worldwide. Chinese AI companies Kimi, Moonshot AI, and Manus AI have all secured major funding rounds recently. Zhipu AI and MiniMax, which went public in Hong Kong in January, now have market valuations of $29 billion and $7.2 billion, respectively.

DeepSeek was founded in 2023 by Liang Wenfeng, who co-founded the quantitative hedge fund High-Flyer, which helped finance its early development. The startup gained global attention in early 2025 with its free-to-use, open-weight RI reasoning model, which challenged the dominance of U.S. AI companies. Liang still holds an estimated 81.6% stake in the company, according to corporate ownership data analyzed by WireScreen.

The U.S. restrictions were introduced to address security concerns, and federal agencies were ordered to remove DeepSeek’s AI technology from their systems. The company did not immediately respond to a TechCrunch request for comment.

Potential investors in the latest round include Chinese battery maker CATL and Tencent, the company behind WeChat. The reported funding follows a $7 billion investment in June and a $1.5 billion fundraising attempt in July, with plans for a potential IPO in China as early as next year.

The massive funding round is another sign of the global race for AI dominance, with billions being invested in AI companies around the world. Chinese companies are leading the charge in this race, securing major funding rounds in recent months.