Chinese AI startup DeepSeek, which has rapidly burst into the global technology elite, is beginning preparations for a stock exchange listing. Simultaneously, the company's management is already in talks with potential investors about a new funding round. This activity underscores the market's incredible appetite for assets in the field of artificial intelligence.
IPO and New Valuation
According to my data, DeepSeek plans to file for an initial public offering (IPO) by the end of this year or early 2027. This means the listing could take place as early as next year. The company is actively working with financial and banking advisors and aims to complete its financial reporting preparation by the end of December.
This week, the Hangzhou-based startup began preliminary discussions with potential investors. A key point: DeepSeek expects to raise additional funds based on a valuation of approximately $71 billion pre-money. This significantly exceeds the $50 billion valuation recorded during the previous round, which closed only about a month ago.
Participants in the last round included technology giant Tencent and battery manufacturer CATL. Startup founder Liang Wenfeng additionally invested about $3 billion of his personal funds into the project. The current valuation increase of over 40% in such a short period is a vivid indicator of the intense competition among investors for a share in the rapidly growing segment of the Chinese technology market.
Massive Infrastructure Investments
This swift return to seeking new partners is directly linked to projected growth in capital expenditures. DeepSeek's management plans to build its own data center and purchase a large batch of graphics processing units. Moreover, the company's engineers are already designing their own specialized chip. This project will help reduce dependence on expensive solutions from American Nvidia and Chinese Huawei.
DeepSeek's interest in going public coincides with similar steps by American competitors. In June, Anthropic and OpenAI filed for IPOs in confidential mode. However, OpenAI CFO Sarah Friar suggested that a public offering might only be expected by 2027, citing high spending and massive investments in computing power.
My comment: The rapid rise in DeepSeek's valuation from $50 to $71 billion in a month is not just a speculative bubble, but a reflection of a fundamental shift. The market has realized that Chinese AI companies can not only catch up but also set the pace, especially under hardware constraints. DeepSeek's own chip, if the project is successful, will become a game-changer capable of reshaping the entire industry supply chain.