DeepSeek reportedly raises $15B after US agencies told to remove it

In short: DeepSeek has reportedly raised about $15 billion in new funding, two days after the US told federal agencies to remove its AI technology.

What happened

Bloomberg reports that DeepSeek, an AI company based in Hangzhou, China, raised about $15 billion, which is roughly 100 billion yuan. If confirmed, it would be one of the largest funding rounds for an AI company in China.

The report comes just two days after the US ordered federal civilian agencies to remove DeepSeek’s AI technology from their systems. The US decision was tied to national security concerns. DeepSeek did not immediately respond to a request for comment from TechCrunch.

Potential investors named in the Bloomberg report include CATL, a major Chinese battery maker, and Tencent, the company behind WeChat. DeepSeek has been raising large sums this year. Reuters previously reported a June round of more than $7 billion at a $50 billion valuation (a company value estimate), and TechCrunch reported the company was in talks in July to raise another $1.5 billion.

DeepSeek is also said to be increasing spending on AI infrastructure, meaning the computer chips and data centers needed to run and train AI systems. It also works on “open-weight” models, which are AI models shared in a way that lets others inspect and reuse key parts (like sharing a recipe instead of only selling the finished meal).

Why it matters

This is a clear example of how AI is becoming tied to politics and national security, not just new apps. Even if some countries restrict a tool, large amounts of money can still flow to it elsewhere, which can shape what AI products get built and where they are used.

Source: TechCrunch AI