# The US ordered DeepSeek removed from federal civilian systems, and two days later the company reportedly raised about $15 billion

> A DHS order against DeepSeek was published October 20. Two days later, Reuters said the lab was closing a 100 billion yuan round led by Tencent and CATL.

- Publisher: JARRUS (@jarrus.tech), thejarrus.com
- Story date: Oct. 20, 2026 (2026-10-20)
- Published: 2026-10-27
- Tags: DeepSeek, China, Regulation and law, Funding and deals
- URL: https://thejarrus.com/en/news/deepseek-ban-and-funding/

A Department of Homeland Security (DHS) order on DeepSeek was published in the Federal Register on October 20. It excludes products of Hangzhou DeepSeek Artificial Intelligence Co. and its affiliates from federal civilian agency procurement. Agencies must also remove DeepSeek products and **third-party products and services developed using DeepSeek implementations** from their IT systems. The legal basis is the Federal Acquisition Supply Chain Security Act of 2018 (FASCSA). According to The Hacker News, the order was signed July 24, no reasons were published and "DeepSeek implementations" is not defined. It covers only what civilian agencies buy and run, not companies or the public. China's foreign ministry spokesperson Mao Ning said China "consistently opposes the overstretching of the concept of national security."

On October 22, Reuters reported, citing four people with knowledge of the matter, that DeepSeek had raised about 100 billion yuan (about **$15 billion**). Existing shareholders Tencent and battery maker CATL were among the biggest investors. One source said more than 15 investors took part, including GigaDevice, Meituan, Geely and Midea. Reuters put the pre-money valuation at about 500 billion yuan, and Bloomberg said the target was raised twice from an initial 50 billion yuan.

DeepSeek has not confirmed the round; Reuters could not reach the company and said terms could still change. DeepSeek raised $7.4 billion in its first outside round in June. In September, Reuters reported that it had hired CITIC Securities to prepare a potential listing on Shanghai's STAR Market.

## Sources

1. [Federal Register (DHS): Notice of Order Regarding Exclusion and Removal of DeepSeek Products from Federal Civilian Executive Branch Information Technology Systems and Procurements, Oct. 20, 2026](https://public-inspection.federalregister.gov/2026-21447.pdf)
2. [The Hacker News: U.S. Orders DeepSeek Removed From Federal Civilian Systems, Bans New Purchases, Oct. 21, 2026](https://thehackernews.com/2026/10/us-orders-deepseek-removed-from-federal.html)
3. [Reuters (ARY News): DeepSeek wrapping up $15 billion fundraising to fuel AI race, sources say, Oct. 22, 2026](https://arynews.tv/deepseek-wrapping-up-15-billion-fundraising-to-fuel-ai-race-sources-say)
4. [TechCrunch: DeepSeek reportedly raises $15B days after US restrictions, Oct. 22, 2026](https://techcrunch.com/2026/10/22/deepseek-reportedly-raises-15b-days-after-us-restrictions/)
5. [China Daily: DeepSeek nears $15 billion funding round backed by Tencent, CATL, Oct. 22, 2026](https://www.chinadaily.com.cn/a/202610/22/WS6ad9b00ee4b06d4aa0564374.html)

Report an error: corrections@thejarrus.com