DeepSeek raises $15B after U.S. bans its technology from federal agencies
Chinese AI startup DeepSeek secured $15B in funding two days after U.S. agencies removed its technology from federal systems.
Key facts
- DeepSeek raised about $15B (~100B yuan) in a funding round (S1, S2).
- The round occurred two days after U.S. federal agencies ordered removal of DeepSeek technology from their systems over security concerns (S2).
- Potential investors include Chinese battery maker CATL and Tencent (S2).
- Earlier June round: >$7B at $50B valuation; July round sought $1.5B at ~$71B valuation, with plans for a potential IPO next year (S2).
- U.S. agencies banned DeepSeek technology from government devices, citing security concerns (S1).
DeepSeek is a Hangzhou-based AI startup founded in 2023 by Liang Wenfeng. The company gained attention in early 2025 with a free-to-use open-weight reasoning model that challenged U.S. AI leaders (S2). It has raised multiple rounds of funding, including more than $7B in June at a $50B valuation (S2).
On 22 October 2026, DeepSeek raised about $15B, roughly 100B yuan, in one of China’s largest financing rounds (S1, S2). The round followed a U.S. order that federal civilian agencies remove DeepSeek technology from their systems (S2). Potential investors include CATL and Tencent (S2).
DeepSeek plans to use the capital to expand internationally and invest in AI infrastructure and open models (S2). Analysts say the funding sets the stage for a potential public listing in China next year (S1).
U.S. agencies cited security concerns as the reason for banning DeepSeek technology from government devices (S1). The ban reflects growing scrutiny of foreign AI firms by governments worldwide (S1).
The $15B round is part of a broader trend of large investments in Chinese AI companies, such as Moonshot AI's $2B raise and Manus AI's $500M raise (S2). Chinese AI firms like Zhipu AI and MiniMax have recently gone public in Hong Kong (S2).
Context
DeepSeek is a Chinese AI company that developed an open-weight reasoning model competing with U.S. firms. The U.S. government has raised security concerns about foreign AI technology. Investors are responding to the global AI race.
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