Chinese artificial intelligence startup DeepSeek has appointed CITIC Securities to prepare for a planned initial public offering (IPO) on Shanghai’s technology-focused STAR Market, according to people familiar with the matter.
The Hangzhou-based company aims to begin the IPO process this year, although the timing of the offering, the amount to be raised and its target valuation have not been decided, the sources said.
DeepSeek’s engagement of CITIC Securities signals progress towards a mainland Chinese listing. Companies seeking to list in China typically appoint securities firms to conduct pre-listing guidance before submitting an IPO application.
DeepSeek and CITIC Securities did not immediately respond to requests for comment.
The potential listing comes as DeepSeek seeks additional capital to fund computing infrastructure, develop artificial intelligence models and attract and retain engineers and researchers.
The company is currently involved in a funding round that could value it at about 500 billion yuan ($74.5 billion), according to checks by Impact Newswire. DeepSeek raised about $7.4 billion in June at a post-money valuation of more than $50 billion.
DeepSeek founder Liang Wenfeng committed 20 billion yuan ($3.0 billion) to the June funding round, while Tencent Holdings invested 10 billion yuan ($1.5 billion) and battery manufacturer CATL contributed 5 billion yuan ($745.5 million). The two companies became DeepSeek’s largest external shareholders.
The startup’s push for a domestic listing comes as Chinese AI companies increasingly turn to public markets to finance the high costs of competing in the sector.
Chinese AI developers Z.AI and MiniMax have already listed in Hong Kong this year, while Beijing-based Moonshot has confidentially filed for a Hong Kong IPO.
The companies are competing for investors at a time when AI development requires substantial spending on computing capacity, data centres and specialised talent.
DeepSeek’s potential valuation remains below those being discussed for major US AI companies. Anthropic could be valued at as much as $2 trillion in a potential IPO, while OpenAI could command a valuation of up to $1 trillion.
The valuation gap reflects the significant difference in revenue between leading Chinese and US AI companies, highlighting the challenge facing Chinese developers as they seek to convert technological advances into sustainable profits.
DeepSeek also faces increasing competition for AI talent. The company has reportedly lost researchers to better-funded rivals, including ByteDance and Xiaomi.
Liang is expected to use proceeds from a potential IPO to strengthen incentives for employees and researchers as the company competes for specialised talent.
A successful listing would give DeepSeek access to a larger pool of domestic capital while providing investors with an opportunity to gain exposure to one of China’s most prominent AI companies.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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