DeepSeek Made Its Name On Efficiency. Now A $16 Billion Raise Is Reported
AIThis post was created with the assistance of artificial intelligence (AI).

🔍 Read the full analysis: DeepSeek Made Its Name On Efficiency. Now A $16 Billion Raise Is Reported on ThorstenMeyerAI.com

Buying for a business?Offer from Amazon

Get business pricing on monitors, keyboards and dev gear

  • Business-only prices and quantity discounts
  • Tax-exempt purchasing
  • Multiple users, one account, clear invoices
As an affiliate, we earn on qualifying purchases.

TL;DR

Bloomberg, Reuters, The Wall Street Journal and The Information have reported that DeepSeek raised about 100 billion yuan, or roughly $15 billion to $16 billion, at a pre-money valuation near 500 billion yuan. DeepSeek has not publicly confirmed the reported round, and reports differ on its exact size, lead investors and state-backed participation.

DeepSeek is reported to have raised about 100 billion yuan, or roughly $15 billion to $16 billion, in a second outside funding round, a striking development for an AI lab known for building models with comparatively low reported costs. Bloomberg, Reuters and The Wall Street Journal reported the raise on October 22; The Information later put the total at 106 billion yuan and said the round had closed. DeepSeek has not publicly confirmed the financing, and the investors’ identities and the role of state-backed institutions remain disputed.

The reports broadly agree on a raise near 100 billion yuan and a pre-money valuation of about 500 billion yuan. Bloomberg, Reuters and the Journal reported the roughly 100 billion yuan figure. The Information reported 106 billion yuan, equivalent to about $15.9 billion, and said the deal was closed. Reuters described the round as wrapping up in its October 22 report, while The Information’s later account described it as completed.

CATL and Tencent are named among the largest investors in reports 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. Reuters reported that more than 15 investors were involved. The exact size of the round and the relative contributions of investors have not been independently established by the company.

The Information’s October 30 report added that the round included state-backed institutions. A claim circulating in summaries of its paywalled reporting says China’s state chip fund led the round and that 27% of the capital was state-backed. The source article says that claim could not be independently verified and that no second outlet had reported it. The distinction matters: participation by named private companies is reported across outlets, while the specific lead role and state-capital share are less firmly supported.

At a glance
updateWhen: Reported October 22-30, 2026; not publi…
The developmentThe Information has reported that DeepSeek completed a funding round of 106 billion yuan, following earlier reports from several outlets of a roughly 100 billion yuan raise.
Thorsten Meyer AI
Funding

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.

~100bnyuan in the second round, about $15 billion (Bloomberg, Reuters, WSJ); The Information: 106bn yuan, $15.9bn
~500bnyuan pre-money valuation, about $74 billion (Reuters, WSJ)
15+investors in the second round (Reuters)
0public statements by DeepSeek on the round, as of 30 Oct

How the price moved

Reported valuations, U.S. dollars

  • April · talksfirst round, The Information$20bn+
  • June · after round 1post-money, investor filings~$52bn
  • October · before round 2pre-money, Reuters / WSJ~$74bn
  • October · after round 2my arithmetic: 500 + 100bn yuan~$89bn

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

60.19%Liang Wenfeng via Ningbo Cheng’en, a partnership he controls31.01%Liang Wenfeng directly8.52%Hangzhou Chengli, the vehicle for the other outside investors~0.28%National AI Industry Investment Fund (state), held directly

Registered capital is not the same as economic value. The October round is not yet in any reported filing.

  1. 22 Apr 2026Tencent and Alibaba in talks, valuation above $20 billionThe Information · first round, talks only
  2. 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)
  3. 25 Jul 2026Round 2 paused after a purported investor transcript went viralBloomberg
  4. 6 Oct 2026Round may double to 100bn yuan; state-backed funds and companies “jostling”CNBC
  5. 20 Oct 2026U.S. order: DeepSeek products out of federal civilian ITDHS, Federal Register 2026-21447
  6. 22 Oct 2026About 100bn yuan raised · Reuters: “wrapping up”, “not ironclad”Bloomberg, Reuters, WSJ
  7. 23 Oct 2026Closed at 106bn yuan ($15.9bn), three people sayThe Information
  8. 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

A New Scale for DeepSeek’s Funding

A raise of this reported size would mark a major change for a company whose public reputation has been tied to capital efficiency and to funding from its owner, the hedge fund High-Flyer. It would give DeepSeek more resources to compete for computing capacity, talent and product development, although the available reports do not specify how the money will be spent. The figure is also a measure of investor interest, not proof that the company’s models will improve or that its business can sustain the reported valuation.

For businesses and individual users, the financing news does not by itself change how DeepSeek products operate. The source article distinguishes between the open model weights, which it says are distributed under the permissive MIT licence and can be run on an organization’s own servers, and DeepSeek’s app and API, which it says store data in China. Those are different deployment routes with different data-handling implications. The article also reports that a U.S. government order dated October 20 directs federal civilian agencies to remove DeepSeek products from their IT systems; that restriction concerns those agencies and should not be presented as a general ban on use by everyone.

Products Worth Considering

LG 34GX90SA-W 34-inch Ultragear WQHD OLED Curved Gaming Monitor

LG 34GX90SA-W 34-inch Ultragear WQHD OLED Curved Gaming Monitor

As an affiliate, we earn on qualifying purchases.

Two Rounds, Six Months Apart

The reported October financing follows DeepSeek’s first outside round, which The Information said closed on June 16 at more than 50 billion yuan, or about $7.4 billion, with a valuation above $50 billion. A filing examined by Caixin was reported in July to imply a post-money valuation above 350 billion yuan, about $52 billion. Reuters and Caixin reported contributions from Tencent, CATL and founder Liang Wenfeng, among others.

Earlier headlines about Tencent and Alibaba should not be confused with the later rounds. The source article traces the widely circulated report of Tencent and Alibaba investment talks to April 22, before DeepSeek’s first outside raise. It says Alibaba does not appear on reported investor lists for either round. After the June financing, registry information reported by Caixin showed China’s National AI Industry Investment Fund as a direct shareholder with about 0.28%. The source says the last reported register put about 91% of registered capital under Liang’s control, directly or through a partnership, but no registry change tied to the October round had been reported by October 30.

Reports of the second round developed over several weeks. Bloomberg reported in July that the raise had paused; CNBC reported in October that DeepSeek might expand it to 100 billion yuan. Bloomberg, Reuters and the Journal then reported the larger financing on October 22, followed by The Information’s report of a closed 106 billion yuan round on October 23 and its account of state-backed participation on October 30. The source article says the Journal and The Information also reported that Liang told investors in September that DeepSeek was earning revenue at an annualized pace of $1 billion. That is an attributed statement, not an audited revenue figure.

The Investor List Remains Unsettled

DeepSeek has not publicly confirmed the round, so its final size, closing date, valuation and investor list remain based on media reports. The reported total is either about 100 billion yuan or 106 billion yuan. The first figure was reported by Bloomberg, Reuters and the Journal; the higher figure and a statement that the round had closed came from The Information.

There is also no confirmed account in the supplied material of who led the deal or how much of the financing came from state-backed sources. The source article says the claim that the state chip fund led with 27% state capital could not be verified and had not been reported by another outlet. Nor had a new company registry entry documenting the October round or changes to Liang’s ownership been reported by October 30. The reported $1 billion annualized revenue pace also lacks audited support in the material provided.

Awaiting Company and Registry Details

The next concrete confirmation would be a statement from DeepSeek or updated company and investor filings that establish the final amount, valuation and ownership changes. Such records could also clarify whether state-backed institutions participated and, if so, what role they played. Until then, the more specific claims should remain attributed to the outlets reporting them rather than treated as settled facts.

For users and organizations, the practical next step is to distinguish between locally hosted open weights and DeepSeek’s own app or API, and to review the data-handling rules that apply to their chosen service. U.S. federal civilian agencies face the separate removal order described in the source article. The funding reports alone do not indicate a change to public access, product terms or the model licence.

Key Questions

How much did DeepSeek reportedly raise?

Bloomberg, Reuters and The Wall Street Journal reported about 100 billion yuan, roughly $15 billion. The Information reported 106 billion yuan, about $15.9 billion, and said the round had closed. DeepSeek has not confirmed a final figure.

Has DeepSeek confirmed the funding round?

No public confirmation from DeepSeek is identified in the source material. The amount, valuation and investor details are currently based on reporting by multiple news organizations.

Who is reported to have invested?

CATL and Tencent are named among the largest investors by Bloomberg and Reuters. Reuters also named Midea, Meituan, Geely, GigaDevice, NetEase, IDG Capital, Boyu Capital, CPE and Legend Capital. Reports of state-backed participation are less independently corroborated.

Does the raise change how people can use DeepSeek?

The reported financing does not itself announce a change to access or product terms. The source article says open model weights can be run on a user’s own servers under the MIT licence, while DeepSeek’s app and API store data in China. Organizations should evaluate the route they use and its data rules.

What is still unknown about the deal?

The final amount, lead investor, state-backed share, completed ownership changes and audited revenue are not established in the supplied material. DeepSeek has not publicly confirmed the financing, and no reported registry update for the October round was available as of October 30.

Source: ThorstenMeyerAI.com

You May Also Like

The Eye Over the City: How Wide-Area Motion Imagery Works — and Where It Goes Blind

An in-depth look at how Wide-Area Motion Imagery (WAMI) works, its applications, limitations, and future integration with radar technology for city-wide surveillance.

Uber’s AI Infra, From The Inside

Uber Distinguished Engineer Uday Kiran Medisetty describes the company’s AI gateway, coding agents and review tools in a Pragmatic Engineer interview.

Trade voice copilo

Trade voice copilo is being tested as a workflow tool for small trades businesses to streamline job notes and invoicing using voice AI and API integrations.

Claude Just Found A CRISPR-like DNA Pattern, But Even Anthropic’s Scientists Aren’t Sure What It Does – Scientific American

Scientific American reports Claude identified a DNA pattern resembling CRISPR, but its function and any experimental validation remain unknown.