Key facts
- Chinese AI startup DeepSeek has appointed CITIC Securities to prepare for an IPO.
- The listing is planned for Shanghai's tech-focused STAR Market.
- DeepSeek aims to initiate the IPO process within the current year.
- The company is seeking capital to fund computing infrastructure, model development, and talent acquisition.
- Rival Chinese AI firms Z.AI and MiniMax have recently listed in Hong Kong.
Chinese artificial intelligence startup DeepSeek has appointed CITIC Securities to prepare for an initial public offering on Shanghai's tech-focused STAR Market, according to sources familiar with the matter. The Hangzhou-based company aims to begin the IPO process this year, indicating a significant step forward in its public listing plans.
DeepSeek's engagement of CITIC Securities, which has not been previously reported, is a typical precursor to a mainland China listing, involving pre-listing tutoring before application submission. The specific timing, fundraising amount, and valuation for the potential offering have not yet been determined.
The move comes as DeepSeek seeks to secure fresh capital to invest in computing infrastructure, develop its AI models, and retain and recruit talent amidst fierce competition from both Chinese and U.S. AI firms. The company is reportedly in the midst of a funding round that values it at 500 billion yuan ($75 billion).
In June, DeepSeek raised approximately $7.4 billion at a post-money valuation exceeding $50 billion. In that round, founder Liang Wenfeng personally invested 20 billion yuan, with Tencent Holdings and battery company CATL contributing 10 billion yuan and 5 billion yuan respectively, becoming its largest external shareholders.
DeepSeek's IPO aspirations align with a broader trend of AI companies seeking public market funding due to the high costs associated with computing power, data centers, and engineering talent. Chinese large language model developers Z.AI and MiniMax have already listed in Hong Kong this year, and startup Moonshot has confidentially filed for a Hong Kong IPO. However, the valuations of Chinese AI developers remain considerably lower than those of their U.S. counterparts, such as Anthropic and OpenAI, reflecting challenges in translating technological competitiveness into profitability.
Proceeds from the IPO are intended to help DeepSeek offer stronger incentives for retaining key staff and researchers, as the company has recently experienced talent departures to better-funded rivals like ByteDance and Xiaomi.