Chinese AI Startup DeepSeek Seeks New Funding at $71 Billion Valuation, Plans IPO

Chinese artificial intelligence startup DeepSeek is pursuing a new round of private funding at a valuation of at least 480 billion yuan ($71 billion) and is simultaneously preparing to file for an initial public offering in mainland China, according to a report from Bloomberg News citing people familiar with the matter.

Funding Ambitions

DeepSeek is reportedly in discussions with prospective investors to raise at least 10 billion yuan in fresh capital. This move comes only weeks after the Hangzhou-based company completed its first external financing round, securing a record $7 billion at a valuation of approximately $50 billion.

The new funding talks target a significant step-up in valuation, reflecting intense investor interest in leading AI firms. The final amount raised could increase depending on demand, Bloomberg noted. The Financial Times first reported the fundraising discussions.

IPO Preparations

In parallel with its private fundraising efforts, DeepSeek has begun planning for a domestic listing. The company is targeting an IPO filing in mainland China as soon as late 2026, which could lead to a market debut in 2027, the report said.

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To advance the listing process, DeepSeek has started discussions with accounting and banking advisers. The company is reportedly working to complete its audited financial statements by the end of December, a key regulatory prerequisite for an IPO application. The submission of listing documents could occur near the end of 2026 or in early 2027, contingent on the finalization of these financials.

Context for Investors

The dual-track strategy of raising private capital while preparing for a public offering highlights the aggressive growth and capital-intensive nature of the generative AI sector. For investors, it signals strong confidence from both the company and its backers in its long-term potential.

However, Bloomberg cautioned that all discussions for both the fundraising and the IPO are ongoing and that the size and timing of these events could still change. The developments position DeepSeek as one of China's most valuable AI startups as it competes in the global race to develop advanced AI models.