Chinese artificial intelligence startup DeepSeek has appointed CITIC Securities to prepare for a potential initial public offering on Shanghai’s technology-focused STAR Market, according to people familiar with the matter.
The Hangzhou-based company could begin the listing process this year, although the timing, size of the offering and valuation have yet to be determined, the sources said.
DeepSeek and CITIC Securities did not immediately comment on the reported IPO plans.
The move signals that DeepSeek is advancing preparations for a mainland Chinese listing, with companies seeking to go public in China typically required to appoint securities firms to guide them through the pre-listing process.
The potential IPO comes as DeepSeek seeks additional funding to expand its computing infrastructure, develop artificial intelligence models and attract and retain talent amid growing competition among Chinese and US AI companies.
DeepSeek is currently in a funding round that could value the company at about $75 billion, Reuters reported in July.
The startup raised about $7.4 billion in June at a post-money valuation of more than $50 billion, according to sources and investor filings.
DeepSeek founder Liang Wenfeng committed 20 billion yuan to the June funding round, while Tencent Holdings and battery maker CATL invested 10 billion yuan and 5 billion yuan respectively, making them the company’s largest external shareholders.
DeepSeek’s IPO plans come as several AI companies move towards public listings to raise capital for the rapidly growing costs of developing and running advanced AI systems.
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Chinese AI firms Z.AI and MiniMax listed in Hong Kong earlier this year, while Beijing-based Moonshot recently filed confidentially for a Hong Kong IPO.
DeepSeek’s potential listing would put it among a growing group of AI companies seeking public-market funding as competition intensifies and demand for computing power, data-centre capacity and skilled engineers increases.
The company has also faced pressure to retain key employees, with some researchers reportedly moving to better-funded rivals including ByteDance and Xiaomi.
Liang is hoping proceeds from a potential IPO will help DeepSeek offer stronger incentives to retain researchers and other key staff, according to one of the sources.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
