DeepSeek raises $15 billion days after US security order

Chinese AI lab's massive funding round intensifies global AI race

By LineZotpaper

Published22 October 2026

Read Time2 min

Sources2 outlets

Just two days after the Biden administration ordered federal civilian agencies to remove its AI technology from their systems over national security concerns, Chinese AI lab DeepSeek has reportedly secured around USD 15 billion (100 billion yuan) in what would be one of the largest private funding rounds in the country. Potential investors include Chinese battery maker CATL and Tencent, the company behind WeChat, according to Bloomberg.

The reported funding follows DeepSeek's investment round in June, when it raised more than $7 billion at a valuation of $50 billion. The company was also reportedly seeking an additional $1.5 billion at a valuation of around $71 billion in July, with plans for a potential IPO in China as early as next year.

The Hangzhou-based AI startup is ramping up spending on AI infrastructure and open models for domestic and international markets, even as it faces restrictions in the United States. Its expansion could further intensify competition among domestic rivals. The massive funding round is the latest sign of investors pouring billions into AI companies around the world, including those in China, to compete in the global AI race.

Chinese company Kimi developer Moonshot AI secured $2 billion at a $20 billion valuation in May. Manus AI raised more than $500 million earlier this month. Meanwhile, Chinese companies Zhipu AI (Z.ai) and MiniMax, which both went public in Hong Kong in January, have market capitalizations of roughly $29 billion and $7.2 billion, respectively.

DeepSeek was founded in 2023 by Liang Wenfeng, who previously co-founded Chinese quantitative hedge fund High-Flyer, which helped finance DeepSeek's early development. The AI startup gained global attention in early 2025 with its free-to-use, open-weight R1 reasoning model, challenging the dominance of US AI companies. Liang still retains an estimated 81.6% stake in its Chinese operating entity following its earlier funding round, according to corporate ownership data analyzed by WireScreen. DeepSeek did not respond to a request for comment.

Analysis

Why This Matters

DeepSeek's USD 15 billion raise demonstrates that China's AI sector can still attract enormous capital despite tightening US export controls, signaling an intensifying global AI arms race.
The timing, immediately after a US government security directive, suggests the funding could be used to further insulate DeepSeek from Western restrictions and accelerate independent AI infrastructure development.
The size of the round, among the largest for any private company, underscores how AI investment continues to dominate global capital markets.

Background

DeepSeek was founded in 2023 by Liang Wenfeng, who co-founded the quantitative hedge fund High-Flyer. It gained global prominence in early 2025 with the release of its free R1 reasoning model, directly competing with leading US AI labs. The US government recently ordered federal civilian agencies to remove DeepSeek's technology, citing security concerns. This latest round follows a USD 7 billion raise in June 2026 and a subsequent USD 1.5 billion raise in July 2026, with the company reportedly planning a potential IPO in China next year.

Key Perspectives

[DeepSeek / Liang Wenfeng]: The startup is aggressively pursuing global AI leadership, investing heavily in infrastructure and open models to compete internationally. With the founder retaining an 81.6% stake, the company has significant control over its strategic direction. [US Government]: The Biden administration has identified DeepSeek as a national security risk, ordering its removal from federal systems and likely seeking to limit its access to advanced US technology. [Investors (CATL, Tencent)]: Major Chinese corporations, from battery to social media, are positioning themselves for the AI boom, providing capital for DeepSeek to scale despite geopolitical headwinds.

What to Watch

DeepSeek's ability to secure advanced semiconductors and hardware for its AI infrastructure in the face of US export controls.
The timing and location of its rumored IPO, and whether it can proceed as soon as next year.
The reaction of US allies in Europe and Asia regarding their own policies on DeepSeek's technology.

Sources

DeepSeek reportedly raises $15B days after US restrictions · AI News & Artificial Intelligence | TechCrunch
DeepSeek reportedly raises $15B days after US restrictions · TechCrunch

Checked

12 claims in this story checked against 1 source: 5 supported.

Show each claim

Partly supportedThe headline says DeepSeek raised $15 billion days after the US security order.AI News & Artificial Intelligence | TechCrunch: “DeepSeek reportedly raises $15B days after US restrictions.”
Partly supportedThe funding round intensifies the global AI race.AI News & Artificial Intelligence | TechCrunch: “The massive funding round is the latest sign of investors pouring billions into AI companies around the world, including those in China, to compete in the global AI race.”
Partly supportedThe Biden administration ordered federal civilian agencies to remove DeepSeek’s AI technology over national security concerns.AI News & Artificial Intelligence | TechCrunch: “Just two days after the U.S. ordered federal civilian agencies to remove DeepSeek’s AI technology from their systems over security concerns”
SupportedDeepSeek reportedly secured about US$15 billion, or 100 billion yuan.AI News & Artificial Intelligence | TechCrunch: “the Chinese AI lab has raised about $15 billion, about 100 billion yuan, one of the biggest funding rounds in the country, Bloomberg reported.”
Partly supportedThe funding would be one of the largest private funding rounds in the country.AI News & Artificial Intelligence | TechCrunch: “one of the biggest funding rounds in the country”
SupportedBloomberg reported that potential investors include CATL and Tencent.AI News & Artificial Intelligence | TechCrunch: “Potential investors include Chinese battery maker CATL and Tencent, the company behind WeChat, among others, according to the report.”
SupportedDeepSeek raised more than $7 billion at a $50 billion valuation in June.AI News & Artificial Intelligence | TechCrunch: “The reported funding follows DeepSeek’s investment round in June, when it raised more than $7 billion at a valuation of $50 billion.”
SupportedIn July, DeepSeek was reportedly seeking another $1.5 billion at around a $71 billion valuation, with a potential China IPO as early as next year.AI News & Artificial Intelligence | TechCrunch: “The company was also reportedly seeking an additional $1.5 billion at a valuation of around $71 billion in July , with plans for a potential IPO in China as early as next year.”
SupportedDeepSeek’s expansion could further intensify competition among domestic rivals.AI News & Artificial Intelligence | TechCrunch: “Its expansion could further intensify competition among domestic rivals.”
Partly supportedZhipu AI and MiniMax have market capitalizations of roughly $29 billion and $7.2 billion, respectively.AI News & Artificial Intelligence | TechCrunch: “Chinese companies Zhipu AI (Z.ai) and MiniMax, which both went public in Hong Kong in January, have market capitalizations of roughly $29 billion and $7.2 billion , respectively, as of today.”
Partly supportedDeepSeek gained global attention in early 2025 with its R1 reasoning model.AI News & Artificial Intelligence | TechCrunch: “The AI startup gained global attention in early 2025 with its free-to-use, open-weight RI reasoning model, challenging the dominance of US AI companies.”
Partly supportedDeepSeek did not respond to a request for comment.AI News & Artificial Intelligence | TechCrunch: “DeepSeek did not immediately respond to a TechCrunch request for comment.”