🔍 Read the full analysis: Why DeepSeek’s Funding Report Matters After Its More-With-Less Rise on ThorstenMeyerAI.com
Get the latest gadgets delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
TL;DR
Several outlets report that DeepSeek raised about 100 billion yuan, or roughly $15 billion, in a second funding round, though the company has not publicly confirmed it. The reported scale and possible state-backed participation matter for investors and customers, but accounts differ on the amount, participants and ownership implications.
DeepSeek reportedly raised about 100 billion yuan—roughly $15 billion—in a second funding round, according to Bloomberg, Reuters and The Wall Street Journal, with The Information later reporting a total of 106 billion yuan. The Chinese AI company has not publicly confirmed the financing, but the reported scale would mark a major change for a lab known for developing competitive models with comparatively limited spending and for relying on its owner, hedge fund High-Flyer.
The reports broadly agree that the round was worth about 100 billion yuan and valued DeepSeek at around 500 billion yuan before the new investment. The Information said the round had closed at 106 billion yuan, citing three people. Reuters reported on October 22, citing four people, that the round was wrapping up; Bloomberg and the Journal also reported a figure near 100 billion yuan. DeepSeek has not issued a public confirmation, so the totals and terms remain reported rather than company-verified.
CATL and Tencent are named among the largest investors in reporting from Bloomberg and Reuters. Reuters also listed Midea, Meituan, Geely, chipmaker GigaDevice, existing shareholders NetEase and IDG Capital, and investment firms Boyu Capital, CPE and Legend Capital. The Information’s October 30 account added that the investors included state-backed institutions. That detail has not been independently corroborated in the source material, and a newsletter summary’s claim that the state chip fund led the round could not be verified.
The reported valuation is a sharp rise from the June financing. Caixin, citing a stock-exchange filing by a small listed investor, reported a post-money valuation above 350 billion yuan after that first outside round. Reuters and the Journal put the new round’s pre-money valuation at about 500 billion yuan. The Journal and The Information also reported that founder Liang Wenfeng told investors in September that DeepSeek was generating revenue at an annualized pace of $1 billion. That is an investor-facing statement, not an audited financial result.
Infographic 01 · Two rounds in six months
From self-funded to $74 billion.
DeepSeek took no outside money until 2026. Then came two rounds, a paused deal and a U.S. order, all in six months.
How the price moved
Reported valuations, U.S. dollars
The striped bar is my calculation (about 600 billion yuan), not a reported figure. Exchange rates vary between outlets.
Who owned DeepSeek after round 1
Share of registered capital, July 2026, as reported by Caixin
Registered capital is not the same as economic value. The October round is not yet in any reported filing.
- 22 Apr 2026Tencent and Alibaba in talks, valuation above $20 billionThe Information · first round, talks only
- 16 Jun 2026Round 1 closes: more than 50bn yuan ($7.4bn), “unusual deal structure”The Information · Liang 20bn, Tencent ~10bn, CATL 5bn yuan (Reuters, Caixin)
- 25 Jul 2026Round 2 paused after a purported investor transcript went viralBloomberg
- 6 Oct 2026Round may double to 100bn yuan; state-backed funds and companies “jostling”CNBC
- 20 Oct 2026U.S. order: DeepSeek products out of federal civilian ITDHS, Federal Register 2026-21447
- 22 Oct 2026About 100bn yuan raised · Reuters: “wrapping up”, “not ironclad”Bloomberg, Reuters, WSJ
- 23 Oct 2026Closed at 106bn yuan ($15.9bn), three people sayThe Information
- 30 Oct 2026Investor details: tech titans and “state-backed institutions”The Information
Sources: The Information, 22 Apr 2026; The Information, 16 Jun 2026; The Information, 23 Oct 2026; The Information, 30 Oct 2026; Reuters, 22 Oct 2026; Bloomberg, 22 Oct 2026; WSJ, 22 Oct 2026; CNBC, 6 Oct 2026; Caixin, 17 Jul 2026; DHS order, Federal Register, 20 Oct 2026. Arithmetic marked as mine.
Powered by Thorsten Meyer AI
Why the Funding Scale Matters
The reported financing challenges the idea that DeepSeek’s rise can be explained only by building capable AI with less capital. Its models helped make the company a symbol of cost-efficient development, but a round reported at roughly $15 billion would provide a much larger pool of money for computing capacity, research and competition. The reporting does not establish how the funds will be spent, and the company has not confirmed the transaction.
The reports also make the identity of investors relevant to customers and policymakers. If state-backed institutions participated, as The Information reported, that could shape questions about the company’s ownership, access to capital and relationship with Chinese industrial policy. The available reporting does not establish the extent of any state role in the new round. One previously reported link is more limited: after the June financing, registry data reported by Caixin showed the National AI Industry Investment Fund holding about 0.28% directly.
For businesses, the funding story is separate from the practical choice of how to use DeepSeek. The source material says the model weights remain available under a permissive MIT licence and can be run on a customer’s own servers, while DeepSeek’s app and API store data in China. The U.S. Department of Homeland Security’s October 20 order directs federal civilian agencies to remove DeepSeek products from their IT systems. The reported fundraising does not itself change those usage arrangements or the federal restriction.
Popular right now
Dyson Cyclone V10 Origin Cordless Vacuum
Ninja DualZone Air Fryer 10 Qt Smart 6-in-1 Grey (DZ950)
KitchenAid Artisan 5-Quart Tilt-Head Stand Mixer, Almond Cream
As an affiliate, we earn on qualifying purchases.
Two Rounds Behind the Headlines
DeepSeek is based in Hangzhou and was founded by Liang Wenfeng. The Information describes the company as owned by High-Flyer, the Chinese hedge fund that financed its work before outside fundraising. In April, The Information reported that Tencent and Alibaba were in talks to invest at a valuation above $20 billion. That report preceded DeepSeek’s first outside round; it should not be treated as confirmation that either company invested in the later financing. The supplied investor lists do not name Alibaba.
The first round was reported as closing in June at more than 50 billion yuan, or about $7.4 billion, with a valuation above $50 billion. A July filing reviewed by Caixin later indicated a post-money valuation above 350 billion yuan. The source material says Liang’s stake was reported at about 91% of registered capital on the last available register, directly or through a partnership he controls. No registry change reflecting the October round had been reported by October 30.
In July, Bloomberg reported that DeepSeek had paused the second round. CNBC reported in October that the company might double its target to 100 billion yuan, with state-backed funds and corporate investors seeking stakes. Those earlier reports help explain why the latest financing attracted attention, but they do not settle the final amount or investor roster.
What the Reports Do Not Settle
DeepSeek has not publicly confirmed the second round, its final size, valuation or investor list. Published estimates differ: Bloomberg, Reuters and the Journal reported about 100 billion yuan, while The Information reported 106 billion yuan. The reports also vary in timing: Reuters described the round as wrapping up on October 22, while The Information said on October 23 that it had closed.
The state-backed participation claim needs particular care. The Information reported that such institutions were involved, but the supplied material says no second outlet corroborates the more specific claim that the state chip fund led the round with 27% state capital. The June registry information establishes a small direct holding by a state-linked fund after that earlier financing; it does not establish who invested in October or how much they contributed.
It is also unclear how the reported financing affects Liang’s control. The last reported register placed about 91% of registered capital with him, directly or through a controlled partnership, but no registry update for the October round was reported by October 30. The reported $1 billion annualized revenue pace is based on Liang’s statement to investors, not audited accounts. Neither the final ownership structure nor the company’s use of the new capital has been disclosed in the supplied reporting.
Watch for Filings and Confirmation
The clearest next evidence would be a public statement from DeepSeek or updated corporate registry and investor disclosures that establish the round’s final amount, terms and participants. Until then, the reported figures should be treated as accounts from news organizations citing sources, not as details confirmed by the company.
Businesses using DeepSeek should check whether they access the service through its app or API, or run the open model weights on their own infrastructure. Those routes have different data and deployment implications, and the reported financing does not change them by itself. U.S. federal civilian agencies are subject to the October 20 removal order; the supplied material does not describe a change to that policy.
Further reporting may clarify whether state-backed institutions took part and whether the new round altered Liang’s control. For now, the funding story signals a reported shift in DeepSeek’s access to capital, while key details about the deal remain unverified.
Key Questions
Did DeepSeek confirm that it raised about $15 billion?
No. Bloomberg, Reuters and The Wall Street Journal reported a round of about 100 billion yuan, and The Information reported 106 billion yuan, but DeepSeek had not publicly confirmed the financing by October 30, 2026.
Who reportedly invested in the round?
Bloomberg and Reuters named CATL and Tencent among the largest investors. Reuters also listed companies and investment firms including Midea, Meituan, Geely, GigaDevice, NetEase, IDG Capital, Boyu Capital, CPE and Legend Capital. The investor list has not been confirmed by DeepSeek.
Did state-backed institutions invest?
The Information reported participation by state-backed institutions. The supplied material says that claim has not been corroborated by a second outlet, and the more specific claim that the state chip fund led the round could not be verified.
Does the reported funding change how companies can use DeepSeek?
Not by itself. The supplied source says the model weights remain available under an MIT licence for self-hosting, while DeepSeek’s app and API store data in China. U.S. federal civilian agencies face a separate October 20 order to remove DeepSeek products from their IT systems.
Source: ThorstenMeyerAI.com
