Chinese AI startup DeepSeek, based in Hangzhou, has announced ambitious plans for a stock exchange listing and a new round of financing. This statement comes just weeks after the successful closure of its previous investment round, highlighting fierce competition among investors seeking advantageous positions in the rapidly growing segment of China's technology market.
According to my information, DeepSeek may file for an IPO closer to the end of this year or early 2027. This timeline paves the way for a listing as early as next year. The company is already working with financial and banking advisors and plans to prepare its financial statements by the end of December.
Company valuation soars to $71 billion
This week, the startup began preliminary discussions with potential investors. DeepSeek aims to raise additional funds based on a valuation of approximately $71 billion pre-money. Current figures significantly exceed the $50 billion valuation recorded during the previous investment round, which closed about a month ago. That round included investments from tech giant Tencent and battery manufacturer CATL. Startup founder Liang Wenfeng additionally invested around $3 billion of his personal funds into the project.
The swift return to seeking new partners is linked to projected growth in capital expenditures. Management plans to build its own data center and purchase a large batch of graphics processing units. Moreover, DeepSeek engineers are designing a proprietary specialized chip. This project will help reduce dependence on expensive solutions from American Nvidia and Chinese Huawei.
The company's plans may still change—the IPO timeline and financing parameters will depend on market conditions and DeepSeek's results.
Global context: the AI giant race
DeepSeek's interest in going public coincides with similar moves by American competitors. In June, Anthropic and OpenAI filed for confidential IPOs. Anthropic noted that the listing date would depend on market conditions and other factors. OpenAI's timeline for going public remains undetermined, with CFO Sarah Friar suggesting that a public offering might not be expected until 2027, citing high spending and massive investments in computing power.
My analysis: DeepSeek demonstrates confident growth and strategic maturity, placing it alongside global AI leaders. However, the success of its IPO will depend on the company's ability to scale infrastructure and reduce dependence on external chip suppliers. In the long term, its proprietary chip could become a key competitive advantage, especially amid geopolitical tensions.