AI Startup DeepSeek Taps CITIC Securities for Shanghai STAR Market IPO, Sources Say

Chinese artificial intelligence startup DeepSeek has engaged CITIC Securities to prepare for an initial public offering on Shanghai's tech-focused STAR Market, according to two people with knowledge of the matter. The move signals the company is advancing its listing plans as it seeks to raise capital amid intensifying global competition in the AI industry.

IPO Preparations Underway

DeepSeek aims to begin the IPO process this year, the sources told Reuters, speaking on condition of anonymity because the discussions are private. The appointment of a securities firm like CITIC is a standard step for companies pursuing a mainland China listing, which involves a pre-listing tutoring period before a formal application is filed.

The timing of a potential offering, the amount DeepSeek could seek to raise, and its target valuation have not yet been determined, the sources added. DeepSeek and CITIC Securities did not immediately respond to requests for comment on the matter.

Funding the AI Arms Race

The push for a public listing underscores the immense capital requirements needed to compete in the AI sector. The funds are critical for financing computing infrastructure, model development, and talent recruitment and retention.

DeepSeek is reportedly in the midst of a funding round that would value it at 500 billion yuan ($75 billion). This follows a previous round in June where the startup raised about $7.4 billion at a post-money valuation of over $50 billion. Key investors in that round included:

Ad

• Founder Liang Wenfeng, who personally committed 20 billion yuan
• Tencent Holdings, which invested 10 billion yuan
• Battery giant CATL, which contributed 5 billion yuan

One source indicated that founder Liang Wenfeng hopes the IPO proceeds will enable DeepSeek to offer stronger incentives to retain key researchers, as the company has recently lost talent to rivals such as ByteDance and Xiaomi.

Competitive Landscape

DeepSeek's IPO ambitions are part of a global rush by AI firms to tap public markets. In China, rivals Z.AI and MiniMax have already gone public in Hong Kong this year, while Moonshot AI has confidentially filed for a Hong Kong IPO at a reported $50 billion valuation.

While substantial, the valuations of Chinese AI companies remain far below those of their U.S. counterparts. For example, investors have suggested Anthropic could seek a valuation of up to $2 trillion in its IPO. According to the report, this significant gap reflects the challenge Chinese AI developers face in converting their technology into comparable levels of revenue.