Chinese AI startup DeepSeek is preparing a new fundraising round and an eventual domestic stock market listing as it ramps up investments in advanced artificial intelligence.
Chinese artificial intelligence startup DeepSeek is planning to raise fresh capital at a valuation of around $74 billion, ahead of a potential initial public offering (IPO) on China’s mainland, according to Reuters, citing people familiar with the matter. The Hangzhou-based company is expected to seek up to 50 billion yuan ($7.4 billion) in the new funding round after raising $7.4 billion in June at a post-money valuation of about $66.5 billion.
Reuters reported that DeepSeek has also begun early discussions on listing on Shanghai’s STAR Market and aims to file for an IPO later this year, although the plans remain under discussion.
The latest fundraising reflects rising investor interest in frontier AI firms, but also highlights the growing cost of developing advanced models, data centres and computing infrastructure. Reuters said DeepSeek is expanding hiring, including chip-design engineers, while also working on its own AI inference chip.
Founder Liang Wenfeng, who previously funded the company largely through his hedge fund High-Flyer, has shifted strategy as competition intensifies from Chinese technology companies including Alibaba, ByteDance, Z.ai, Moonshot and MiniMax. Reuters reported that Liang invested 20 billion yuan ($3 billion) in the June funding round, while Tencent and CATL invested 10 billion yuan ($1.5 billion) and 5 billion yuan ($740 million) respectively.
Other investors include China’s national AI fund, NetEase, JD.com, IDC Capital, Loyal Valley Capital, Monolith Management and Shixiang Capital. “The fundraising and IPO plans are at an early stage and the terms and timeline may still change,” sources told Reuters.
