Chinese AI startup DeepSeek has reportedly secured approximately 100 billion yuan ($15 billion) in a funding round backed by major Chinese companies, including Tencent and battery manufacturer CATL. The financing, among the largest for a Chinese AI startup, comes two days after the United States ordered federal civilian agencies to remove DeepSeek technology from government systems over national security concerns.
According to an October 22 Bloomberg report, the Hangzhou-based company increased its fundraising target twice, from 50 billion yuan to 80 billion yuan, before reaching approximately 100 billion yuan. Reuters reported that the round was nearing completion, although final terms and investor commitments remained subject to change.
DeepSeek Secures Funding From Major Chinese Companies
Tencent, which operates WeChat, and Contemporary Amperex Technology (CATL) were among the largest investors in the round. Other reported participants include Geely, Meituan, Midea, NetEase, GigaDevice, and several investment firms.
The latest financing follows DeepSeek’s June funding round, when it raised more than $7 billion at a valuation of approximately $50 billion. In July, the company was reportedly seeking an additional $1.5 billion at a valuation of around $71 billion.
DeepSeek plans to increase spending on AI infrastructure and open-weight models serving domestic and international customers. The company is also preparing for a potential Chinese stock market listing in 2027, having reportedly hired CITIC Securities to advise on the process.
Funding Follows US Restrictions on DeepSeek Technology
The fundraising comes shortly after the US Department of Homeland Security ordered federal civilian agencies to stop purchasing DeepSeek products and remove the company’s technology from government IT systems.
The restrictions also cover third-party applications built using DeepSeek technology, although agencies can request exemptions. US officials cited concerns that government information processed through DeepSeek systems could potentially become accessible to Chinese authorities.
DeepSeek is continuing to develop its models despite these restrictions, including investments in Chinese computing infrastructure and locally manufactured AI processors.
Chinese AI Companies Continue Raising Capital
Other Chinese AI developers have also secured substantial investments in 2026. Moonshot AI, the developer of Kimi, raised $2 billion at a $20 billion valuation in May, while Manus AI reportedly secured more than $500 million in October.
Meanwhile, Zhipu AI, also known as Z.ai, and MiniMax completed public listings in Hong Kong in January. As of October 22, their market capitalizations stood at approximately $29 billion and $7.2 billion, respectively.
DeepSeek was founded in 2023 by Liang Wenfeng, who previously co-founded quantitative hedge fund High-Flyer. The company attracted international attention in January 2025 with its R1 reasoning model, which offered competitive AI capabilities at relatively low development costs.
High-Flyer helped finance DeepSeek’s early development before the company sought outside investment. According to ownership data analyzed by WireScreen, Liang retained an estimated 81.6% stake in DeepSeek’s Chinese operating entity following its earlier funding round.
Featured image credits: Wikimedia Commons
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