DeepSeek raises $15B as China approves its AI for global use — two days after the US ban

Two days after the United States ordered federal agencies to remove the technology of Chinese company DeepSeek from their systems, the company is close to completing a new funding round of about $15 billion — roughly 100 billion yuan — according to reports from Bloomberg and Reuters.

The biggest backers include Tencent, the company behind the WeChat app, and CATL, the major electric-vehicle battery maker. More than 15 investors are involved in total, including new names such as Midea, Meituan, Geely and GigaDevice, along with Boyu Capital, CPE, Legend Capital and existing backer IDG Capital. A Reuters source said the deal is not fully closed yet — the figures and the investor lineup could still change.

The Hangzhou-based company, founded in 2023 by Liang Wenfeng, originally aimed to raise just 50 billion yuan — but investor demand doubled the target, making it one of the largest funding rounds ever in China. The round values DeepSeek at 500 billion yuan before the new money is added. In June the company raised more than $7 billion, and in September it hired CITIC Securities to prepare for a possible listing on Shanghai's STAR stock market.

On the same day, Reuters reported that DeepSeek and fellow Chinese company MiniMax have won state approval to use their AI models internationally, according to a post from a social media account affiliated with state broadcaster CCTV. The move follows China's October 16 proposal to control exports of 23 AI technologies — though China's commerce ministry said most would remain exportable, with simplified licensing for open-source technology and for Chinese companies running their own computing centres abroad.

The message is clear: on one side of the Pacific, the US is stripping DeepSeek out of its systems. On the other, China's biggest investors are writing the largest cheques, and Beijing is opening the international doors.

What does this mean for you?

Students: The free and cheap DeepSeek is here to stay — with even more money behind its improvement. You can keep using it for studying, translation and writing without worrying about expensive paid plans.

Small business: Competition between the US and China is pushing AI prices down. This is a good time to try AI tools in your business — costs are heading down, not up.

Developers: Open models and easier export licensing mean you can build on DeepSeek at low cost, even here in East Africa.

Privacy caution: The US still has data-security concerns. The rule is simple: don't put sensitive business or personal information into any AI service, especially a foreign one.