DeepSeek Secures $15B Investment from Tencent & CATL Following US Restrictions

Chinese AI startup DeepSeek has recently completed one of the largest private fundraising rounds in China’s history. The company secured approximately 100 billion yuan (~$15 billion USD), a mere two days after the U.S. directed federal civilian agencies to eliminate DeepSeek’s AI technology from their systems due to national security concerns.

This funding round, initially reported by Bloomberg and later covered by TechCrunch, boasts high-profile supporters such as tech giant Tencent and battery manufacturer CATL. Other notable investors include Midea, Meituan, and Geely. The fundraising target reportedly doubled at least twice during negotiations, starting at 50 billion yuan and ultimately reaching its final count, indicating exceptional investor demand.

The Hangzhou-based company now holds a pre-money valuation of approximately $74 billion. Sources suggest that the newly acquired capital is intended for the expansion of data centers, acceleration of open-source model development, and preparation for a potential IPO on Shanghai’s STAR Market.

DeepSeek’s annualized revenue run rate has recently reached $1 billion, more than doubling in just a few months. The demand for its API access among businesses and developers continues to be robust. This fundraising round sends a distinct geopolitical message: while Washington is limiting DeepSeek’s reach within U.S. federal systems, Chinese industrial and tech capital is reinforcing the country’s aspirations to compete directly with OpenAI and Anthropic on the global AI stage.

Source: TechCrunch — DeepSeek reportedly raises $15B days after US restrictions