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The US banned DeepSeek from federal computers. Two days later it reportedly raised $15 billion

· 2 min read · Drafted with AI help, reviewed by Kepler Oates

Illustration for: The US banned DeepSeek from federal computers. Two days later it reportedly raised $15 billion

Chinese AI lab DeepSeek just had a week that sums up the US-China AI race. On Monday, the US government ordered federal agencies to rip its technology out of their systems. By Wednesday, it had reportedly lined up one of the biggest funding rounds in China's history.

The US order

  • What it says. The Department of Homeland Security ordered federal civilian agencies to immediately stop buying DeepSeek products and remove them from government IT systems, according to a Federal Register notice published October 20, BleepingComputer and TechCrunch report.
  • It reaches further than the app. The order covers DeepSeek's affiliates and third-party products and services built on DeepSeek technology. Agencies have 60 days to ask the cybersecurity agency CISA for exceptions.
  • Why. DHS cited the risk that the Chinese government could access DeepSeek's infrastructure and users' data, and pointed to a 2025 security review of DeepSeek's iPhone app that found unencrypted data transmission and weak encryption.
  • What it isn't. It "is not a general ban on private or consumer use," BleepingComputer notes.

China's Foreign Ministry said Beijing opposes "overstretching the concept of national security and politicizing technology and trade issues."

The money

Two days later, Bloomberg reported DeepSeek has raised about $15 billion (about 100 billion yuan), with battery maker CATL and Tencent among potential investors, TechCrunch reports. DeepSeek didn't respond to requests for comment.

InteractiveDeepSeek's reported funding in 2026Hover or tap a bar. All figures reported, not confirmed by DeepSeek.

Amount raised

  • June round: $7.0B (media report)
  • July (sought): $1.5B (reported, unconfirmed)
  • October round: $15.0B (reported, unconfirmed)

Source: TechCrunch, Oct 22, 2026, citing Bloomberg and Reuters.

Founded in 2023 by Liang Wenfeng and based in Hangzhou, DeepSeek shocked the industry in early 2025 with a free, open-weight reasoning model. A September report accused it and other Chinese labs of "distilling" US models, copying knowledge by harvesting their outputs; OpenAI and Anthropic both said they had seen such attempts.

Why it matters

  • Two AI worlds. The US is pushing its agencies and contractors toward American AI, while Chinese investors pour money into their own champions. Countries and companies increasingly have to pick a side.
  • The supply chain question. Because the order covers tools built on DeepSeek, agencies now have to find AI hiding inside other software. Businesses will face the same question.

What it means for you

  • You can still legally use it. This order covers federal civilian agencies, not you.
  • But think about your data. Don't put work documents, client details or personal information into any AI app unless you know where that data goes and your employer allows it.
  • Check your tools. If you run a business or freelance for government clients, ask your software vendors which AI models their products use.
  • Keep your own list. Write down every AI app you use, what data it gets, and whether it's approved at work. It takes ten minutes.

Disclosure: this site's posts are drafted with AI help. This one was drafted with Claude, made by Anthropic, which has reported DeepSeek attempts to collect Claude outputs. It sticks to published reporting.

Sources

Not financial advice. This summarizes public reporting for information only. It is not investment, tax or legal advice. Do your own research or talk to a licensed professional.