Chinese AI Stocks Surge on Report of DeepSeek IPO Plans

Chinese artificial intelligence stocks rallied on Wednesday following a report that AI startup DeepSeek is planning an initial public offering in mainland China later this year. The news lifted investor sentiment for other major players in the country's burgeoning AI sector.

Market Reaction

Shares of Zhipu AI, which trades as Knowledge Atlas Tech Joint Stock (HK:2513), jumped nearly 9%, while MiniMax Group Inc. (HK:0100) surged almost 15% in Wednesday trading. Both companies, along with DeepSeek, are considered part of China's "AI Tigers," a cohort of startups at the forefront of the nation's AI development.

The rally underscores investor optimism surrounding the high-growth potential of China's domestic AI industry, as a potential high-value listing for one of its leaders is seen as a positive signal for the entire sector.

DeepSeek's Reported Plans

According to a Wednesday report from Bloomberg, DeepSeek is preparing to file for an IPO in mainland China as soon as this year. The company is also reportedly seeking new private funding at a valuation of at least $71 billion.

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This development comes just weeks after the company completed a significant funding round. Key figures from its recent financing activities include:

• Target Valuation: At least $71 billion in a new private funding round.
• Recent Valuation: $50 billion in its last round.
• Recent Capital Raised: $7 billion.

Sector Context

The potential IPO from a major player like DeepSeek has amplified investor interest in a sector that has already seen significant gains in 2026. Zhipu AI, for instance, has seen its stock soar over 1,500% since its public listing in January.

However, performance has been mixed across the sector. Minimax Group has lagged since its market debut and is currently down 25% year-to-date, despite an initial surge post-listing. DeepSeek has gained prominence for its technology, with its V4 line of models recently ranked as a top open-sourced AI model, according to industry reports.