Chinese artificial intelligence startup DeepSeek is reportedly considering submitting its initial public offering (IPO) application as early as this year, with plans to list on the mainland Chinese stock market in 2027.
On July 14, Bloomberg News cited sources familiar with the matter, stating that DeepSeek has recently begun preparations for its listing on the mainland stock exchange.
According to the report, the company is currently discussing the listing process with advisory firms, including accounting firms and investment banks. DeepSeek plans to finalize its financial reports necessary for the IPO by the end of December. Depending on the status of its financial statements, the company is expected to submit its IPO application either by the end of this year or early next year.
Before the IPO, DeepSeek is also seeking to attract additional investments in the private market. This comes just weeks after securing $7 billion in funding.
Sources indicate that DeepSeek is negotiating with new investors to achieve a pre-investment valuation of at least 480 billion yuan (approximately $105 billion). The company aims to secure a minimum of 10 billion yuan in additional funding, with the total amount potentially increasing depending on the number of participating investors.
This valuation is over 40% higher than the approximately $50 billion valuation during its first external funding round earlier last month, which included investments from major players such as Tencent, the largest internet company in China, CATL, the world's largest battery manufacturer, and the state-led National AI Industry Investment Fund.
However, the timeline for the IPO and the additional funding plans have not yet been finalized. Sources noted that the schedule and scale could vary based on market conditions and DeepSeek's performance.
Founded in 2023, DeepSeek is owned by the Chinese hedge fund Zhejiang High Flyer Asset Management. The company has been recognized for developing high-performance AI models with relatively limited computing resources, demonstrating that Chinese firms can compete with leading Silicon Valley companies despite U.S. export restrictions on advanced semiconductors.
DeepSeek is expected to invest the funds it secures into expanding its computing infrastructure and AI research. The company's management has previously stated that they prioritize innovative AI research over short-term profitability for potential investors.
Liang Yuanfeng, founder and CEO of DeepSeek, has also expressed a commitment to continue developing open-source AI models while pursuing the goal of achieving artificial general intelligence (AGI). Recently, DeepSeek has expanded its business into the field of 'agentic AI,' where software can make decisions and perform tasks autonomously without human intervention.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.