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TL;DR
Several news organizations report that DeepSeek raised about 100 billion yuan, or roughly $15 billion to $16 billion, in a second funding round. The Information says state-backed institutions participated, but DeepSeek has not confirmed the round and reports differ on its size and investor mix.
DeepSeek reportedly raised about 100 billion yuan, equivalent to roughly $15 billion to $16 billion, in a second funding round, with The Information reporting on October 30 that state-backed institutions were among the investors. The Chinese AI company has not publicly confirmed the financing, and the reports differ on the final amount and who led the round.
Bloomberg, Reuters and The Wall Street Journal reported on October 22 that DeepSeek had raised about 100 billion yuan. Reuters, citing four people, described the round as wrapping up, while The Information reported the next day that it had closed at 106 billion yuan, or about $15.9 billion, citing three people. The Information’s October 30 account added that the investor group included Chinese technology companies and state-backed institutions. These are media reports, not a financing announcement by DeepSeek.
The reports broadly put the company’s pre-money valuation near 500 billion yuan. Bloomberg and Reuters named battery maker CATL and Tencent among the largest investors. Reuters also listed Midea, Meituan, Geely and chipmaker GigaDevice, along with existing shareholders NetEase and IDG Capital and investment firms Boyu Capital, CPE and Legend Capital. The source account says more than 15 investors participated, but a complete, independently verified investor list has not been published.
The degree of state involvement is less settled than the reported headline amount. Newsletter summaries of The Information’s paywalled report say China’s state chip fund, known as the “Big Fund,” led the round and that state capital made up 27 percent. The source account says it could not verify those details and that no second outlet had reported them. CATL and Tencent’s reported participation, by itself, does not establish that the state led the financing.
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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Funding Could Reshape DeepSeek’s Reach
If the reported amount is accurate, the round would give DeepSeek substantial new funding as it competes with major AI developers and expands its capacity. The reported valuation—around 500 billion yuan before the new investment—would also mark a sharp rise from the valuation indicated after its June financing. The figures remain media-reported, however, rather than confirmed company disclosures.
The reported participation of state-backed institutions matters because it may indicate that DeepSeek’s growth is drawing support beyond private technology and financial investors. But the available material does not establish the size of any state-linked stake in this round, the identity of all state participants, or whether any investor has influence over company decisions. Readers should distinguish the reported involvement from verified evidence of control.
For customers, the fundraising does not by itself change how DeepSeek’s products work or where data is handled. The source account says the company’s model weights remain available under a permissive MIT licence, while DeepSeek’s own app and API store data in China. It also cites a U.S. Department of Homeland Security order dated October 20 requiring federal civilian agencies to remove DeepSeek products from their systems. Companies should identify whether they use self-hosted models or DeepSeek’s hosted services before drawing conclusions about the effect of the news.
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Two Rounds, Different Investor Reports
DeepSeek is based in Hangzhou and was founded by Liang Wenfeng. The source account describes it as owned by hedge fund High-Flyer. The company’s outside fundraising began this year, after it had operated with High-Flyer’s backing for almost three years, according to the account.
The first round closed in June, according to The Information, which reported more than 50 billion yuan, or about $7.4 billion, at a valuation above $50 billion. Caixin later cited a stock-exchange filing by a small listed investor to put the post-money valuation above 350 billion yuan, approximately $52 billion. The source account says reports attributed about 10 billion yuan of that round to Tencent, 5 billion yuan to CATL and 20 billion yuan to Liang. Those details concern the earlier financing, not the reported October round.
Some headlines about Alibaba and Tencent refer to a different stage of fundraising. The Information reported on April 22 that the companies were in talks to invest at a valuation above $20 billion, before DeepSeek’s first outside round. The supplied account says Alibaba does not appear on the reported investor lists for either completed round. In June, Caixin-reported registry data also showed the National AI Industry Investment Fund holding about 0.28 percent directly. That earlier holding indicates some state-linked investment before the new round, but it does not verify the October reports about the Big Fund or a 27 percent state-capital share.
“The company has not publicly commented on the reported round.”
— DeepSeek
Round Size and State Role Unverified
DeepSeek has not confirmed the financing in the source material. Reports give a figure of about 100 billion yuan, while The Information puts the total at 106 billion yuan. The difference may reflect distinct reporting or timing, but the available information does not explain it. The full terms, final valuation and definitive list of investors are also not publicly established.
The claim that the Big Fund led the round and that state capital accounted for 27 percent is attributed only to summaries of The Information’s report in the source account. It says the claim could not be independently verified and was not corroborated by another outlet. Separately, the reported annualized revenue of $1 billion came from remarks Liang reportedly made to investors in September; it is not presented as an audited financial figure.
Ownership after the financing is also unresolved. The last reported register put roughly 91 percent of registered capital with Liang, directly or through a partnership he controls, according to the source account. No registry change reflecting the October round had been reported by October 30. That means it is not yet clear how the new investment affects ownership or control.
Watch for Filings and Company Comment
The clearest confirmation would come from a statement by DeepSeek, financing documents or updated company registry records identifying investors and ownership changes. Until then, the reported total and investor details should be treated as media-reported, not company-confirmed. Follow-up reporting may clarify whether the round closed at 100 billion or 106 billion yuan and whether any state-backed institution led it.
For organizations using DeepSeek, the immediate practical step is to distinguish between self-hosted model weights and the company’s app or API. The source account says those options have different data arrangements; the funding news alone does not change them. U.S. federal civilian agencies also face the October 20 removal order described in the source material. The scope of that order and any effects on other users should not be inferred from the fundraising reports.
Key Questions
How much did DeepSeek reportedly raise?
Bloomberg, Reuters and The Wall Street Journal reported about 100 billion yuan. The Information reported 106 billion yuan, approximately $15.9 billion. DeepSeek has not confirmed the amount.
Did state-backed investors lead the round?
The Information reportedly described participation by state-backed institutions. Summaries of its report say the state chip fund, or Big Fund, led and that state capital represented 27 percent, but the supplied account says those details could not be independently verified or corroborated by another outlet.
Who are the reported investors?
Reports name CATL and Tencent among the largest investors. Reuters also listed Midea, Meituan, Geely, GigaDevice, NetEase, IDG Capital, Boyu Capital, CPE and Legend Capital. A complete, confirmed list is not available.
Has the reported round changed DeepSeek’s ownership?
It is not yet clear. The last reported register put about 91 percent of registered capital with founder Liang Wenfeng, directly or through a partnership he controls. No registry change for the October round had been reported by October 30.
Does the funding change how customers’ data is handled?
The funding reports do not establish any change to data practices. The source account says DeepSeek’s app and API store data in China, while model weights can be run on a customer’s own servers under an MIT licence. Users should check which product and deployment route they use.
Source: ThorstenMeyerAI.com
