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TL;DR
Several outlets report that DeepSeek raised about 100 billion yuan, or roughly $15 billion, in a second funding round. The Information says the round closed at 106 billion yuan and included state-backed institutions, but DeepSeek has not confirmed the financing and reports differ on its size and investor mix.
DeepSeek reportedly closed a second funding round worth about 100 billion yuan, or roughly $15 billion, with state-backed institutions among the investors, according to reporting by The Information and other outlets. The Chinese AI company has not publicly confirmed the deal, and the accounts differ on its final size and which investors led it.
Bloomberg, Reuters and The Wall Street Journal reported on October 22 that DeepSeek had raised about 100 billion yuan. The Information reported on October 23 that the round had closed at 106 billion yuan, or about $15.9 billion, citing three people. The outlets describe the financing as roughly double an earlier target. The Information’s October 30 report added that state-backed institutions took part, alongside Chinese technology and corporate investors.
Reports broadly name Tencent and battery maker CATL among the major investors, and put DeepSeek’s pre-money valuation at about 500 billion yuan. Reuters also listed Midea, Meituan, Geely, chipmaker GigaDevice, existing shareholders NetEase and IDG Capital, and investment firms Boyu Capital, CPE and Legend Capital. The precise amount, investor stakes and lead investor have not been independently established in the supplied reporting.
One claim about state participation is less settled than the overall fundraising reports. Summaries of The Information’s paywalled coverage say China’s state chip fund, often called the “Big Fund,” led the round with 27% state capital. The report’s details have not been corroborated by another outlet in the source material. A separate, earlier registry report by Caixin said the National AI Industry Investment Fund held about 0.28% of DeepSeek after the June financing. No registry update showing ownership after the October round has been reported.
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.
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A Larger Role for Outside Capital
If the reported financing is accurate, it would mark a sharp change for a lab long described as funded by its owner, the hedge fund High-Flyer. A round of this size would give DeepSeek substantial new outside backing as it competes in a costly field where access to computing capacity, talent and infrastructure can shape how quickly models are developed and served. The reported valuation also signals investor expectations about the company’s commercial prospects, not proof that those expectations will be met.
The possible participation of state-backed institutions draws attention because DeepSeek is a prominent Chinese AI developer operating amid competition over chips and advanced computing. But the reported involvement should not be treated as evidence that the government controls the company. Available reporting says founder Liang Wenfeng held about 91% of registered capital directly or through a partnership he controls on the last reported register. The October round’s ownership changes have not been published.
For customers, the financing itself does not establish a change in product terms or data practices. The supplied source says DeepSeek’s app and API store data in China, while its downloadable model weights use the MIT licence and can be run on a customer’s own servers. Those are different ways to use the technology, with distinct operational and data considerations. The source also cites a U.S. order dated October 20 requiring federal civilian agencies to remove DeepSeek products from their IT systems.
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How the Two Rounds Fit Together
The October reports describe DeepSeek’s second outside funding round, following a first round that closed in June. The Information reported in June that the first financing exceeded 50 billion yuan, or about $7.4 billion, at a valuation above $50 billion. Caixin later cited a stock-exchange filing by a small investor to report a post-money valuation above 350 billion yuan, approximately $52 billion. Those figures refer to the June round, not the new financing.
There was also an earlier report that can be mistaken for the June deal. On April 22, The Information said Tencent and Alibaba were in talks to invest at a valuation above $20 billion, before DeepSeek’s first round. The source material says Alibaba does not appear on reported investor lists for either completed round. Bloomberg reported in July that DeepSeek had paused a second round; CNBC reported in October that the company might expand it to 100 billion yuan. The later October accounts indicate that a much larger financing proceeded, though DeepSeek itself has not announced it.
Some reports also say Liang told investors in September that DeepSeek was generating revenue at an annualized pace of $1 billion. That figure is attributed to his reported statement and is not described as audited. It should not be confused with a published financial disclosure from the company.
“The round is “wrapping up.””
— Reuters, citing four people
Size, Investors and Ownership Still Unclear
DeepSeek has not publicly confirmed the financing, so the amount, closing status and investor list remain based on news reports. Bloomberg, Reuters and The Wall Street Journal reported about 100 billion yuan; The Information said 106 billion yuan. The source material does not provide a company statement or public filing that resolves the difference.
The lead investor is also disputed. Bloomberg and Reuters identify CATL and Tencent as among the largest investors, while summaries of The Information’s report say the state chip fund led the round. The latter account has not been verified by a second outlet in the material provided. It is also unclear how much each investor contributed, whether any reported investor has governance rights, and how much of the company each now owns.
The most recent ownership picture cited in the source dates to after the June round, when Liang reportedly held about 91% of registered capital. That figure cannot be assumed to remain accurate after the October financing. Nor does the reported $1 billion annualized revenue figure establish audited revenue, profitability or future performance.
Watch for Filings and Company Comment
The next clear evidence would be a statement from DeepSeek, an updated company registry, or investor disclosures that identify the final amount and ownership structure. Until then, the reported valuation, participation by state-linked funds and division of stakes should be treated as reported details, not company-confirmed facts.
For businesses and public agencies, the funding news does not itself change how DeepSeek’s products can be used. Organisations should distinguish between the company’s hosted app or API and model weights deployed on their own infrastructure, and review applicable data rules and government restrictions. The U.S. federal civilian removal order cited in the source is a separate policy development, not a consequence of the reported fundraising.
Further reporting may clarify whether the round closed at 100 billion or 106 billion yuan, who led it, and whether Liang’s reported control changed. A company confirmation or updated registry would help establish those facts; neither is included in the source material available here.
Key Questions
How much did DeepSeek reportedly raise?
Bloomberg, Reuters and The Wall Street Journal reported about 100 billion yuan. The Information reported a closed round of 106 billion yuan, approximately $15.9 billion. DeepSeek has not confirmed the figure.
Did state-backed investors take part?
The Information reported participation by state-backed institutions. Summaries of its report say the state chip fund led the round, but that specific claim has not been corroborated by another outlet in the supplied material. A separate Caixin report had previously identified a small state-linked fund holding after the June round.
Who are the reported major investors?
Reports name Tencent and CATL among the largest investors. Reuters also listed Midea, Meituan, Geely, GigaDevice, NetEase, IDG Capital, Boyu Capital, CPE and Legend Capital. The final investor list and individual stakes remain unconfirmed.
Does the funding change how customers use DeepSeek?
No product or data-policy change is established by the reported financing. The source material distinguishes DeepSeek’s hosted app and API, which store data in China, from model weights that can be run on customers’ own servers under the MIT licence. Users and organisations should check the terms and rules that apply to their chosen setup.
Source: ThorstenMeyerAI.com
