Chinese artificial intelligence startup DeepSeek is preparing for an initial public offering (IPO) on Shanghai’s tech-focused STAR Market. The Hangzhou-based company has engaged CITIC Securities to facilitate the pre-listing process, with aims to commence the IPO this year. DeepSeek is a Chinese artificial intelligence startup, primarily focused on developing large language models and other AI technologies, seeking to innovate in the rapidly evolving global AI landscape. This move signals the startup’s progression in its IPO plans, as securing a securities firm for pre-listing tutoring is a standard step for mainland China listings.
The IPO push comes as DeepSeek actively seeks fresh capital. These funds are crucial for bolstering its computing infrastructure, advancing model development, and strengthening talent retention and recruitment efforts. The artificial intelligence sector is experiencing fierce competition globally, especially among leading Chinese and U.S. firms, necessitating significant investment in computing power, data-centre capacity, and engineering expertise. DeepSeek is reportedly in the midst of a funding round that could value it at 500 billion yuan (approximately US$75 billion), building on a previous June round that raised about US$7.4 billion at a post-money valuation exceeding US$50 billion.
DeepSeek’s pursuit of public funding mirrors a broader trend among its rivals, both domestically and internationally, who are also looking to public markets to finance the escalating costs of competing in the AI domain. Recent months have seen Chinese large language model developers such as Z.AI and MiniMax go public in Hong Kong, with Beijing-based startup Moonshot also having confidentially filed for a Hong Kong IPO. While these Chinese firms command substantial valuations, they remain considerably below those reportedly sought by U.S. counterparts like Anthropic and OpenAI, reflecting a significant revenue disparity and the challenge for Chinese developers in monetising their advanced technology.
A key motivation for the IPO, according to sources, is to enable DeepSeek to offer stronger incentives to retain essential staff and researchers, a critical factor given recent talent losses to well-funded rivals. However, the precise timing of a potential offering, the specific amount DeepSeek aims to raise, and its target valuation are yet to be determined, as both DeepSeek and CITIC Securities have not commented on the ongoing private discussions.
