TechCrunch reports that Chinese AI lab DeepSeek has reportedly raised about 15 billion dollars, which equals about 100 billion yuan, just two days after the United States ordered federal civilian agencies to remove its technology from their systems. This massive financial boost stands as one of the largest funding rounds in the country, drawing potential investors such as battery maker CATL and Tencent.
Key takeaways
- DeepSeek secured about 15 billion dollars in new funding according to Bloomberg reports.
- The funding arrives two days after US civilian agencies were told to remove the lab's AI tech.
- Backers potentially include CATL and Tencent.
- The Hangzhou startup previously raised over 7 billion dollars in June.
What is behind the new DeepSeek funding round?
The reported capital injection follows an earlier investment round in June where the startup raised more than 7 billion dollars at a valuation of 50 billion dollars. Bloomberg noted that the company also sought an additional 1.5 billion dollars in July at a valuation of around 71 billion dollars, alongside plans for a potential initial public offering in China as next year arrives. Liang Wenfeng founded the firm in 2023 after co-founding the quantitative hedge fund High-Flyer, which supported early development. Corporate ownership data analyzed by WireScreen shows Liang keeps an estimated 81.6 percent stake in the Chinese operating entity.
How do US restrictions affect Chinese AI lab expansion?
Despite facing pressure from the United States over security concerns, the Hangzhou-based startup continues increasing spending on AI infrastructure and open models targeted at domestic and international markets. TechCrunch reports that this aggressive expansion threatens to intensify competition among domestic rivals. Other firms are also pulling in huge sums, with Moonshot AI securing 2 billion dollars in May and Manus AI raising over 500 million dollars earlier this month, while Zhipu AI and MiniMax hold market caps of roughly 29 billion dollars and 7.2 billion dollars respectively following their January public debuts in Hong Kong.
Why it matters
The enormous capital influx highlights how investors continue pouring billions into technology companies globally to compete in the broader AI race, even as geopolitical hurdles mount. While DeepSeek did not immediately respond to a request for comment from TechCrunch, the latest developments show that domestic and international market ambitions remain undeterred by overseas limitations.
Frequently asked questions
DeepSeek reportedly raised about 15 billion dollars, which is about 100 billion yuan, according to Bloomberg reports cited by TechCrunch.
Potential investors include Chinese battery maker CATL and Tencent, the company behind WeChat, among other backers.
DeepSeek was founded in 2023 by Liang Wenfeng, who previously co-founded the Chinese quantitative hedge fund High-Flyer.
The reported funding came just two days after the United States ordered federal civilian agencies to remove DeepSeek AI technology from their systems over security concerns.
Liang Wenfeng still retains an estimated 81.6 percent stake in the Chinese operating entity following earlier funding rounds, according to corporate ownership data analyzed by WireScreen.
Based on reporting by TechCrunch. Read the original article
