🔍 Read the full analysis: The $16 Billion Question Around DeepSeek’s Reported Funding on ThorstenMeyerAI.com
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TL;DR
Several outlets report that DeepSeek closed a second funding round of about 100 billion yuan, or roughly $15 billion to $16 billion, at a reported pre-money valuation near 500 billion yuan. DeepSeek has not publicly confirmed the round, and reporting differs on its exact size and who led it, including claims about state-backed investors.
DeepSeek’s reported second funding round has reached about 100 billion yuan—roughly $15 billion to $16 billion—according to several news organizations, but the company has not confirmed the deal. The Information reported October 30 that the round had closed at 106 billion yuan and included state-backed institutions, adding detail to a major financing story whose size, lead investors and government role remain disputed.
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 nearing completion, while The Information reported the following day that it had closed. The Information put the total at 106 billion yuan, or about $15.9 billion. DeepSeek has not publicly commented, so the precise amount and closing status have not been confirmed by the company.
Reports broadly place the company’s pre-money valuation at about 500 billion yuan. Bloomberg and Reuters named Chinese battery maker CATL and technology company Tencent among the largest investors. Reuters also listed Midea, Meituan, Geely, chipmaker GigaDevice, existing shareholders NetEase and IDG Capital, and investment firms Boyu Capital, CPE and Legend Capital. The reports describe a pool of more than 15 investors, but published accounts do not fully agree on the participants or their stakes.
The Information’s October 30 account said the investor group included powerful state-backed institutions. Newsletter summaries of its report have said China’s state chip fund, often called the “Big Fund,” led the round and that state capital represented 27%. That specific account has not been independently verified in the supplied reporting, and no second outlet is cited as confirming it. A separate reported figure is that Liang Wenfeng told investors in September that DeepSeek was generating revenue at an annualized pace of $1 billion; the figure is attributed to him, not presented as audited results.
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 New Scale of AI Financing
If the reported amount is accurate, the financing would mark a sharp change for a lab known for relying on its owner, the hedge fund High-Flyer, rather than outside capital. A round of roughly $15 billion would give DeepSeek substantial funding as it competes in the costly development of advanced AI models. The scale also makes the identity and influence of investors consequential: the distinction between private technology investors and state-linked institutions matters to how the company’s ownership and strategic backing are understood.
For businesses and public agencies, the fundraising news does not itself change how DeepSeek products work or what data they handle. The source reports that the company’s app and API store data in China, while its model weights are available under a permissive MIT licence and can be run on a company’s own servers. Those are different ways of using the technology, with different data and policy considerations. The U.S. Department of Homeland Security’s October 20 order directs federal civilian agencies to remove DeepSeek products from their IT systems, a separate development that makes the distinction relevant to government users.
The financing also bears on questions about DeepSeek’s control. The last reported ownership register placed about 91% of registered capital with founder Liang Wenfeng, either directly or through a partnership he controls. No reported registry update for the October round is available in the source material, so it is not yet possible to say how the new investment affects that figure or the company’s governance.
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Two Rounds, Six Months Apart
The reported second round follows DeepSeek’s first outside financing in June 2026. The Information said that first round raised more than 50 billion yuan, or about $7.4 billion, at a valuation above $50 billion. A stock-exchange filing reviewed by Caixin was later reported to imply a post-money valuation above 350 billion yuan, around $52 billion. Those figures use different valuation points: the current round is reported at a pre-money valuation, while the June figure is post-money, so they should not be treated as directly equivalent.
Before the June financing, an April report from The Information said Tencent and Alibaba were in talks to invest at a valuation above $20 billion. That report predates the first round; Alibaba does not appear in the investor lists described for either completed or reported round in the supplied material. Caixin reporting on the June round also identified China’s National AI Industry Investment Fund as a direct shareholder with about 0.28%. This indicates some state-linked exposure before the October reports, but does not establish that the Big Fund led the newer round.
The coverage of the second round developed over several weeks. CNBC reported October 6 that DeepSeek might double its fundraising target to 100 billion yuan. Bloomberg, Reuters and The Wall Street Journal reported the roughly 100-billion-yuan figure on October 22; The Information then reported a 106-billion-yuan close and published additional investor details on October 30. The accounts agree on the broad scale, while differing on specific terms and participants.
“a who’s who of Chinese tech investors—and some of the country’s most powerful state-backed institutions”
— The Information, in its October 30 report
Deal Size and State Role
DeepSeek has not publicly confirmed that the second round closed, its size, its valuation or its investor list. Most reports put the amount at 100 billion yuan; The Information says 106 billion yuan. The supplied accounts do not explain the difference, and the source material notes that exchange-rate conversions also vary.
There is also no independently corroborated account here that the Big Fund led the financing or that state capital made up 27% of it. CATL and Tencent are named among major investors by Bloomberg and Reuters, but the available reports do not settle who led the round or how much each participant invested. No October registry update is reported, leaving the post-financing ownership structure unknown. The reported $1 billion annualized revenue figure likewise remains an attributed statement rather than an audited result.
Confirmation and Ownership Records
The clearest next evidence would be a public statement from DeepSeek or updated company and investor records showing whether the round closed, its final amount, the participating institutions and their stakes. Those records could also clarify whether Liang Wenfeng’s reported majority position changed and whether state-linked funds took a larger role than they held after the June round.
Until that information appears, readers should treat the central financing figure as a widely reported but unconfirmed company development, and the claims about a state fund leading it as less firmly established. For organizations using DeepSeek, the source material describes no product change tied to the financing. They should separately check their own policies and the applicable federal order, and distinguish between using DeepSeek’s hosted app or API and running licensed model weights on their own infrastructure.
Key Questions
Has DeepSeek confirmed that it raised about $16 billion?
No. Bloomberg, Reuters, The Wall Street Journal and The Information have reported a second round of about 100 billion yuan or more, but DeepSeek has not publicly confirmed the financing in the supplied material.
How much did the reported round raise?
Bloomberg, Reuters and The Wall Street Journal reported about 100 billion yuan. The Information put the amount at 106 billion yuan, roughly $15.9 billion. The final figure remains unconfirmed by DeepSeek.
Did China’s state chip fund lead the round?
The Information’s reported investor details include state-backed institutions. The claim that the Big Fund led the round and that state capital accounted for 27% appears in summaries of its report, but the supplied material says this has not been independently verified by another outlet.
Does the fundraising change how companies can use DeepSeek?
The source material reports no immediate product change linked to the financing. DeepSeek’s hosted app and API are described as storing data in China; model weights are available under an MIT licence and can be run on a company’s own servers. The U.S. order separately requires federal civilian agencies to remove DeepSeek products from their IT systems.
Source: ThorstenMeyerAI.com
