Chinese AI startup DeepSeek is seeking a 500 billion yuan ($74 billion) valuation in a new fundraising round as it quietly prepares for a mainland stock market debut, according to multiple people familiar with the discussions. The move comes only weeks after the company closed its first external financing, signaling that investor demand for China’s best-known AI startup remains strong and that building frontier AI is becoming far more expensive.
DeepSeek is aiming to raise up to 50 billion yuan in the new round, according to one person briefed on the plans. At the same time, the Hangzhou-based company has begun early work on a listing on Shanghai’s STAR Market, China’s Nasdaq-style exchange, with an internal goal of filing for an IPO later this year, according to Bloomberg, citing people familiar with the matter.
The discussions remain in the early stages, and both the fundraising terms and IPO timeline could change. The people requested anonymity since the plans are confidential.
The fundraising effort follows DeepSeek’s first outside financing in June, when the company raised roughly 50 billion yuan at a post-money valuation of about 450 billion yuan, according to people familiar with that transaction. The back-to-back funding rounds highlight the growing financial demands of developing advanced AI models at a time when competition is intensifying across China and globally.
China’s AI Startup DeepSeek Prepares for IPO After Seeking New Funding at $74 Billion Valuation
Bloomberg reported on Tuesday that DeepSeek had begun preparing for a possible IPO filing. The Financial Times separately reported that the company was considering a new fundraising round at a valuation of at least 480 billion yuan.
“Chinese AI pioneer DeepSeek has begun preparations for an initial public offering and may file as soon as this year, setting the stage for what could be a landmark debut for the country’s technology industry,” Bloomberg reported.
“The Hangzhou-based company has started planning for an IPO in the mainland and targeted a filing this year that would allow it to debut in 2027, said the people, asking not to be identified because the discussions are confidential. The startup is in talks with accounting and banking advisors,” Bloomberg added, citing one of the people.
DeepSeek became one of the most closely watched AI companies in the world after releasing high-performance AI models in 2025 that challenged leading U.S. systems at a fraction of the expected training and operating costs. Its rise surprised competitors, fueled debate over the economics of AI development, and pushed Chinese AI startups into the global spotlight.
That momentum now comes with a much higher price tag.
Soon after completing its first fundraising round in June, DeepSeek said it planned to double its workforce across several departments, including teams focused on data centers and AI agents capable of carrying out tasks with minimal human input. Those expansion plans require significant investment in computing infrastructure, engineering talent, and specialized hardware.
Earlier this month, Reuters reported that DeepSeek is developing its own AI inference chip and has quietly increased hiring for chip design roles. Building custom AI silicon could reduce reliance on external suppliers and lower long-term operating costs, though it requires substantial upfront investment.
For years, DeepSeek stood apart from many AI startups by avoiding outside investors. Founder Liang Wenfeng financed much of the company’s growth through proceeds from his quantitative hedge fund, High-Flyer, according to Reuters. That strategy shifted this year as the financial demands of frontier AI continued to climb.
The company now faces fierce competition from some of China’s largest technology firms, including ByteDance and Alibaba, along with well-funded AI startups such as Z.ai, Moonshot, and MiniMax. Success in this market increasingly depends on securing enough capital to finance chips, computing clusters, research talent, and infrastructure.
Reuters previously reported that Liang personally invested 20 billion yuan during the June financing round. Tencent contributed 10 billion yuan, and battery giant CATL invested 5 billion yuan, making them the company’s largest outside shareholders. Other investors include China’s state-backed national AI fund, NetEase, JD.com, IDG Capital, Loyal Valley Capital, Monolith Management, and Shixiang Capital, according to Reuters and media reports.
The participation of China’s national AI fund reflects Beijing’s broader push to strengthen domestic AI leaders and reduce dependence on foreign technology. A successful public offering would mark another milestone for China’s AI industry and could become one of the country’s biggest technology listings in recent years.
If DeepSeek completes its fundraising at the targeted valuation, it would cement its position among the world’s most valuable privately held AI companies and give it fresh resources to compete in an AI race where access to capital has become nearly as important as breakthroughs in research.
