DeepSeek is preparing for IPO filing as soon as this year

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Chinese AI pioneer DeepSeek has begun preparations for an initial public offering and may file as soon as this year. Find out more here

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Chinese AI pioneer DeepSeek has begun preparations for an initial public offering and may file as soon as this year, setting the stage for what could be a landmark debut for the country’s technology industry.

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The Hangzhou-based company has started planning for an IPO in the mainland and targeted a filing this year that would allow it to debut in 2027, said the people, asking not to be identified because the discussions are confidential. The startup is in talks with accounting and banking advisors, one of the people said.

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DeepSeek is also seeking to raise more funds in the private market ahead of the IPO, mere weeks after closing a record US$7 billion financing round, the people said. It has begun talks with new backers about a fresh round targeting a pre-money valuation of at least 480 billion yuan (US$71 billion), they said.

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That’s an increase from the roughly US$50 billion price tag DeepSeek drew in its first round of external financing, which closed in early June with big names including Tencent Holdings Ltd. and  Contemporary Amperex Technology Co. Ltd. DeepSeek is aiming to raise at least 10 billion yuan of additional funds, though the final amount could go several times higher depending on the number of investors that sign on, the people said.

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Discussions remain in flux, and the IPO timing and funding plans could change, the people said. Execution will depend on market conditions and the company’s performance.

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The startup is working with accounting firms to finish its financial report by the end of December, a necessary step for the IPO filing, one person said. The company plans to make the filing near the end of this year or early in 2027, depending on when the financials are ready, the person said.

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DeepSeek didn’t respond to an emailed request for comment. The latest fundraising effort was first reported by the Financial Times.

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DeepSeek has drawn enormous interest from would-be investors because it’s one of a clutch of companies that sit at the heart of China’s effort to compete globally on AI. It developed a model last year that stunned the industry, demonstrating the ability to build a cutting-edge yet efficient platform with fewer computing resources. The breakthrough demonstrated that Chinese companies could compete with the best of Silicon Valley despite United States export restrictions on advanced hardware.

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The startup is now chasing more funds to support an ambitious expansion plan, including an increase in computing capacity. AI labs around the world are striking deals to secure the data centre infrastructure they need to train and operate AI services.

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Founded in 2023, DeepSeek is owned by hedge fund Zhejiang High-Flyer Asset Management. Its earlier fundraising set a record for first-time financing by a Chinese tech startup. Apart from Tencent and CATL, it also notably drew the backing of the National Artificial Intelligence Industry Investment Fund, one of the vehicles that spearheads Beijing’s over-arching endeavours in the sector.