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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 puts the figure at 106 billion yuan, about $15.9 billion. DeepSeek has not publicly confirmed the round, and claims that state-backed institutions took part have not been independently corroborated in the source material.
DeepSeek reportedly raised about 100 billion yuan—roughly $15 billion to $16 billion—in a second funding round, according to reports published in October. The Information reported that the round had closed at 106 billion yuan and included Chinese state-backed institutions, but DeepSeek has not confirmed the financing and that description of state participation is not independently corroborated in the supplied reporting.
Bloomberg, Reuters and The Wall Street Journal reported on October 22 that the round was worth about 100 billion yuan. Reuters, citing four people, described it as nearing completion, while The Information reported the following day that it had closed at 106 billion yuan, citing three people. The figures amount to roughly $15 billion to $15.9 billion, depending on the reported total and conversion. The accounts agree on the broad scale but not the precise amount or status at the time of publication.
Reuters and Bloomberg named CATL and Tencent among the major 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 reported pre-money valuation is about 500 billion yuan. None of the investor lists cited in the source material establishes the precise ownership shares for the new round.
The Information described participation by “some of the country’s most powerful state-backed institutions.” A secondary account of its report said the state chip fund, known as the “Big Fund,” led the round, with 27% state capital. The source material says that claim could not be independently verified and that no second outlet reported it. DeepSeek has not issued a public statement confirming the amount, investors, valuation or alleged state-backed role.
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 Major Shift in DeepSeek Funding
If the reported total is accurate, the financing would mark a sharp change for a lab that had largely relied on its owner, the Chinese hedge fund High-Flyer, to fund operations. A round of this size could give DeepSeek more capital for model development, computing capacity and commercial growth. Those are possible uses of the money, not details confirmed by the reports summarized here.
The reported presence of state-backed institutions matters because it could affect how customers, investors and governments assess the company’s ownership and governance. But the distinction between a direct state investment, investment through a state-linked fund, and other institutional participation is important. The available material does not establish the terms, control rights or exact public-sector share of the October financing.
For organizations using DeepSeek, the funding report does not itself change the technical or legal terms of access. The source material says the model weights remain under the MIT licence and can be run on an organization’s own servers, while DeepSeek’s app and API store data in China. It also reports that U.S. federal civilian agencies were ordered to remove DeepSeek products. Users should distinguish locally hosted models from the company’s app and API rather than treating them as the same data arrangement.
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Two Rounds, Six Months Apart
DeepSeek is based in Hangzhou and was founded by Liang Wenfeng. The funding reports followed a first outside round in June. The Information said that round exceeded 50 billion yuan, or about $7.4 billion, at a valuation above $50 billion. A stock-exchange filing examined by Caixin was later reported to imply a post-money valuation above 350 billion yuan, or roughly $52 billion.
The new round was first reported at about 100 billion yuan on October 22. The Information’s later account raised the reported figure to 106 billion yuan and said the financing was complete. That outlet also reported that Liang told investors in September that DeepSeek was generating revenue at an annualized pace of $1 billion. This was an attributed statement, not an audited result presented in the source material.
Older reports should not be confused with the current round. The Information reported in April that Tencent and Alibaba were in talks to invest, before DeepSeek’s first outside round. The source material says Alibaba does not appear on the reported investor lists for either round. It also says Caixin reported a state-linked investment fund held about 0.28% after the June round, while Liang held about 91% of registered capital on the last reported register, directly or through a partnership he controlled. No registry change for the October round had been reported by October 30.
““A who’s who of Chinese tech investors—and some of the country’s most powerful state-backed institutions.””
— The Information, as quoted in the supplied report
Investor Mix Still Unverified
DeepSeek has not publicly confirmed that the round closed, its final size, its valuation or its investor roster. Reports put the total at either 100 billion yuan or 106 billion yuan, and their descriptions of whether it was complete varied by date. The source material does not provide the underlying financing documents.
The state-backed component is less settled than the reported involvement of private companies. The Information’s account refers to state-backed institutions, while a claim that the Big Fund led the round and that state capital represented 27% was not verified by a second outlet in the material provided. The identity of those institutions, the nature of their investment and any governance rights remain unclear.
It is also not yet known how the October financing changes the ownership structure. The last reported registry information predates the round, so claims about Liang’s current stake or the state’s resulting share would be premature. The reported $1 billion annualized revenue figure is likewise not presented as independently audited.
Watch for Filings and Confirmation
The next useful evidence would be a public comment from DeepSeek or updated corporate registry and investor disclosures that clarify the round’s total, closing date, valuation and participants. Such records could also show whether the October financing changed the ownership picture reported after the June round.
Until then, the reported financing should be treated as a major but unconfirmed corporate development, with the precise state-backed role still disputed or unverified. For customers, the immediate practical question remains which DeepSeek product they use: a locally hosted model or the company’s app and API. The reports do not say that the funding round itself changed those products’ data practices or licence terms.
Key Questions
How much did DeepSeek reportedly raise?
Bloomberg, Reuters and The Wall Street Journal reported about 100 billion yuan, or roughly $15 billion. The Information later reported 106 billion yuan, about $15.9 billion. DeepSeek has not publicly confirmed the amount.
Has DeepSeek confirmed state-backed investors took part?
No public confirmation is described in the source material. The Information reported participation by state-backed institutions, but the more specific claim that the state chip fund led the round and that state capital accounted for 27% was not independently corroborated there.
Who are the reported investors?
Reports named CATL and Tencent among the largest investors. Reuters also listed Midea, Meituan, Geely, GigaDevice, NetEase, IDG Capital, Boyu Capital, CPE and Legend Capital. DeepSeek has not confirmed the roster or each investor’s stake.
Does the funding change how customers use DeepSeek?
The reports do not say that the financing changed product terms. The source material distinguishes the model weights, which it says remain under the MIT licence and can be hosted locally, from DeepSeek’s app and API, which it says store data in China.
What remains unknown about the round?
The final amount, confirmed closing status, full investor list, state-backed investors’ precise role and the resulting ownership structure remain unverified in the supplied reporting. No updated registry information for the October round was reported by October 30.
Source: ThorstenMeyerAI.com
